Financing your next flip with private lenders Philadelphia is a great way to leverage your capital and work toward being able to acquire your next property while finishing the current flip. Increasing your deals and flips means more capital than can be leveraged to get more flips funded by private lenders Philadelphia and empower you to scale your business.
Banks vs. private lenders Philadelphia
Typically banks are more focused on offering traditional mortgages to people buying houses that will become their primary residences. Some flippers are able to obtain a mortgage or traditional loan from a bank, and they typically have some of the lowest interest rates. But watch out for long borrowing periods (30 years), penalties for paying it off early and a long, slow application process.
Private lenders in Philadelphia are non-bank lenders, including private lenders (like Uncle Joe or an experienced real estate investor) as well as hard money lenders who are licensed to lend money to real estate investors. Private lenders don’t offer traditional mortgages. They offer loans to finance fix-and-flip projects on shorter terms, but with typically higher interest rates. The application process is quicker and more focused on the fundamentals of the flip project. Many private lenders, including Legacy Capital, excel in getting you the money as quickly as you need it to close your deal.
2 Tips for real estate investors
#1. Meet with a hard money lender before you move on your next deal.
Have you successfully completed at least three rehabs in the last two years?
Are you eager to do more deals by leveraging your capital with hard money financing?
You could line up your next deal and then apply for a hard money loan with your choice of private lenders Philadelphia. Or you could meet with us at Legacy Capital to review borrower requirements and real estate property requirements.
We could look at how much capital you would need to bring into a deal, the loan to value ratio and what cash reserves you need to be confident going into that next flip. Then you can find your next deal, knowing what to expect in the loan application process.
#2. Remember the lowest interest rate is not necessarily the best financing for your flip.
Private lenders Philadelphia could have interest rates that are higher than the banks, but they are a much better source of capital for real estate investors as their loans are designed for house flippers.
In addition to providing you with capital fast enough for you to close on good deals, hard money loans are negotiated with short terms, repayment flexibility and the opportunity to draw funds for stages of the rehab.
At Legacy Capital, we’re experienced real estate investors and we don’t want to just fund your next deal, we want to help your real estate investing business move up to the next level so you can do many, many deals in the years to come. We’d be happy to meet with you and work out a blueprint with you for scaling your business and achieving your goals. Are you ready to go and to use our expertise and capital to help?