Hard Money Loans in Pennsylvania

A remarkable bargain on a fix and flip property in a very good area of the city suddenly shows up — seems so good that it is difficult to believe. Professional home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a gain of $40-$50k as an average on more than one occassion. Naturally, you also recognize that their results can be credited to the fact that they are experts, are well versed in hard money loans, they understand the marketplace quite well and they also know how to work a public auction for getting a good deal. However, you're certain that your impressive rehab and renovation talents can help you do a quality job for this home — in addition, you've already arranged to have one of the best general contractors in the business to work on the job.

But capital can be a different question altogether. If you meet with a customary lender, much like a bank for funding, it is very likely going to take at least 4-8 weeks for the acceptance to be completed and the money to be furnished. Because most home owners favor a fast closing, it may be best to start looking for other financing options.

Furthermore, if you have a less-than-perfect credit score or don't receive a regular income source, it can be more difficult for you to qualify for a bank loan, considering the stricter loan requirements banks have introduced in recent times. So must you admit defeat and abandon your ambition to venture into fix and flips? By no means, especially when Pennsylvania hard money loans enable you to realize many amazing things in the real estate market.

A hard money home loan in Pennsylvania provides what is probably most crucial to real estate investors — a quick closing time of as little as a few weeks. Also, hard money lenders are able to do lending up to 70% LTV of the property value, as determined by a credentialed third-party evaluator. With the lending rates starting off around 10%, hard money real estate loans might seem, at first glance, to be higher priced when compared with traditional bank loans. But once you consider these are not long-term home loans, the rate of interest may be misleading. Short-term loans of a couple months to a few years are best approached in terms of cost of capital, very much like every other financial outlay involved with a project. When you have sold the property and have made a good gain, you can reclaim this expense from the house — just like recovering the money necessary for the brand-new appliances for the kitchen that you put in.

In addition, even individuals with poor credit can easily be eligible for a hard money mortgage. Rather than focusing only on the borrower's credit score or source of income, Pennsylvania hard money lenders, who could be a private company or an individual, say yes to a loan as a result of evaluating the home value, how easy it will be to market, where it is located, and the likelihood of recuperating their capital in the event of foreclosure. On top of that, if the borrower can demonstrate past experience in comparable real estate projects, can place down cash for a down payment, and the cost of comparative houses in the area works to his benefit, he stands a very good shot of being approved to get a hard money real estate loan.

So if you have stumbled on a wonderful home to flip with a high prospect of returns, you've also found yourself a hard money lender in Pennsylvania that's happy to finance your fix and flip ventures. Fill out the form on this page or give us a call and let's discuss your project.