Hard Money Loans in Rochester
A remarkable deal on a fix and flip opportunity in a good neighborhood all of a sudden shows up — seems too good to be true. Expert house flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a gain of forty to fifty grand on average. Without question, their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction talents have been major factors to their success. Still, your rehab and renovation skills aren't that bad either — besides, you have already identified a good general contractor to tackle this project.
But funding is a different question altogether. When you go after a normal loan from the bank, you will wind up waiting around somewhere around 1-2 months up until the time the loan is approved and the funding is readily available. Because most sellers give preference to a fast closing, you might have to begin searching for some other funding alternatives.
Moreover, in case you have an unfavorable credit rating or don't have a regular source of income, it is normally more difficult for you to obtain a bank loan, considering the tougher loan guidelines banks have issued recently. So should you give up and abandon your desire to venture into the real estate market? Never, on the grounds that you can always go the Rochester hard money loan route to finance your flipping project.
A hard money home loan in Rochester provides what's probably most desired by real estate investors — a very fast closing time of as few as fourteen days. And additionally, loan amounts are made up to 70% loan-to-value of the as-is value, as determined by a qualified appraiser. Some people consider hard money real estate loans to be costlier than ordinary loans, because the lending rates of such loans often start at 10%. But in reality, the interest rate is not as relevant for these loans, since they will never be long-term loans. Short-term loans of several months to a few years are best thought of in terms of cost of capital, much like any other expenditure related to a project. And when you've flipped the property, recuperating this expense is the exact same as recouping the expense for the kitchen and bath upgrades you performed.
Moreover, even an individual with weak credit can still qualify for a hard money mortgage. Rochester hard money lenders do not authorize a loan solely judging by the person's credit score — instead they also assess the property, its location and value, and the property's capability to pay back the loan without the assistance of the person. On top of this, if the applicant can demonstrate prior experience in equivalent real estate projects, can put down money for a down payment, and the price of comparative homes in the vicinity works to his benefit, he has a good chance of being eligible to obtain a hard money real estate loan.
So should you come across a really good and lucrative investment opportunity, rest assured you will have a hard money lender in Rochester, willing to lend you the capital that you need. Fill out the contact form on this page or get in touch with us via phone and let's discuss your property or properties.
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