A leader in non-conforming loans, Trevor Cole Commercial Corp. provides debt support to America’s real estate investors. Based in New York City, Trevor Cole Commercial Corp. closes many types of loans including hard money loans for home flippers.
There are many reasons why real estate flippers prefer hard money loans. One of them is the ease of access. Unlike traditional mortgages that take time to close, hard money loans can be accessed much faster. And when a good property is on the market, time is of the essence. Another reason is more convenient terms. Many hard money loans for home flipping have a term of six to 18 months. This is different from traditional mortgage loans with a term of 15 or 30 years. Home flippers want to purchase property, renovate it, and sell quickly therefore, an option to avail of shorter-term loans can be an attractive prospect. Moreover, many hard money loans have fixed interest rates that are lower than traditional mortgage loans. In some instances, they are given as balloon-payment loans where repayment is not done monthly but as a one-time payment, after a home is sold. Furthermore, loans for flipping homes are advanced to investors based on their ability to repay rather than their credit scores. That means a track record of successful flips can convince a lender to fund an investor’s next flip even if he or she has bad credit. Finally, hard money loans can cover a significant part of the entire project’s cost for up to 90 percent of the cost of acquisition and renovation.
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AuthorTrevor Cole Commercial Corporation of New York City specializes in procuring funding for large real estate projects, including multifamily properties and office buildings across the nation. Archives
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