Hard Money Loans in Mount Vernon
Suppose you've encountered this excellent deal on a fix and flip property located in a great location, and you are either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. You may have heard that professional house flippers, such as the couple on HGTV's Flip or Flop, turn a remarkable average profit of around $40,000 - $50,000. Undoubtedly, you also are aware that their results can be attributed to the fact that they are professionals, are well versed in hard money loans, they know market trends quite well and additionally, they are good at working a public auction to purchase their houses at a reasonable price. Nonetheless, your rehab and remodeling knowledge isn't that bad either — aside from that, you've already located a good building contractor to start the home.
But money is often a separate issue altogether. If you meet with a standard lending institution, much like a bank for a mortgage loan, it can take, as a minimum, 4-8 weeks for your acceptance to come through and your funds to be furnished. With all the sellers wanting a fast closing, that does not appear like a good option to you at all.
With banks adding tougher loan criteria in recent times, it is now more difficult for a self-employed individual to get a home loan, especially if his credit rating is not optimal. So does this leave you with no option, but to abandon your aspiration to venture into rehabbing? Absolutely not, because you also have the Mount Vernon hard money loan alternative.
A hard money home loan in Mount Vernon provides what's perhaps most important to real estate investors — a fast closing in as few as 14 days. And additionally, loan amounts can be made up to 70% loan-to-value of the as-is value, as determined by a professional appraiser. A number of people believe hard money real estate loans to be higher priced than ordinary loans, considering interest rates for these loans normally start out at 10%. But in reality, the lending rate is not as useful a measure for these loans, simply because they are not long-term loans. Short-term loans of a couple of months to a handful of years are best understood as cost of capital, much like every other expense involved with a project. Once you've turned the home and have made a successful profit, you'll be able to get back this expense from the property — very much like recovering the cost of brand-new home appliances that you've put in.
Furthermore, even someone with low credit will be able to qualify for a hard money mortgage. The customer's credit score will not be the primary determining factor for Mount Vernon hard money lenders — in addition, they look at the home, how much it is worth, its location, and its capability to bring back their investment if things should not go as intended. Adding to this, if the individual have proven experience in similar real estate ventures, can place down money towards a down payment, and the price of equivalent houses in the neighborhood works to his benefit, he has got a good chance of being approved to obtain a hard money real estate loan.
Searching for a hard money lender in Mount Vernon to cover expenses for your fix and flip endeavor is not difficult, so long as the opportunity that lies before you is promising and boasts the right potential for returns. Fill out the contact form or get in touch with us via phone to discuss the property or properties you have in mind.