Hard Money Loans in Woodbury
There is this amazing opportunity to fix and flip this nice out of date property or home in a good area and it seems a lot like the one you have been looking forward to for quite some time. Everybody knows that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, are able to earn a typical profit margin of forty to fifty thousand dollars when they rehab properties. And sure, they are helped in a big way via their professional knowledge, auction skills and knowledge of hard money loans. On the other hand, you are assured that your impressive rehab and renovation skills will enable you to do a superb job on this project — in addition, you have already arranged to have one of the best general contractors in the area to take care of this job.
But financing is usually a different problem altogether. For those who meet with a standard lender, like a bank for a loan, it's likely going to take at least thirty to sixty days for your approval to be completed and the money to be given out. Because most sellers wish to have a fast closing, you might need to begin seeking out additional funding options.
What's more, if you have a less-than-perfect credit score or don't receive a regular source of income, it may be tougher for you to be eligible for bank financing, considering the more stringent loan criteria banks have issued recently. So does this leave you with no option, but to drop your ambition of venturing into rehabbing? Definitely not, seeing as you always have the Woodbury hard money loan alternative.
A hard money home loan in Woodbury gives you what's possibly most sought after by real estate investors — a quick closing in as little as a few weeks. Besides that, hard money lenders are able to do loans up to 70% LTV of the property value, as assessed by a qualified third-party evaluation. Some people regard hard money real estate loans to be higher in price than customary financing, because the lending rates of such loans generally start off at 10%. But in reality, the lending rate is not as relevant for these loans, because they will never be long-term financing. The price tag on such short-term loans ought to be evaluated much like every other financial outlay that you might encounter during the project. Once you've sold the home and have made a successful financial gain, you're able to get back this expense from the house — just like recovering the cost of brand-new kitchen appliances that you put in.
Furthermore, even a person with weak credit will be able to be eligible for a hard money mortgage. The borrower's credit score will not be the sole deciding factor for Woodbury hard money lenders — they also evaluate the home, how much it is worth, where it is located, and its capacity to bring back their financial commitment if everything does not go as intended. Other factors that affect an individual's acceptance for a hard money real estate loan can include the amount he can put towards a down payment, his prior experience as a real estate investor, and price of comparable, recently sold residences nearby.
Locating a hard money lender in Woodbury to help with expenses for your real estate project is not very challenging, assuming that the opportunity in front of you is promising and offers a strong potential for returns. Fill out the form on this page or call us to talk about your project.
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