Whether you’re just starting in the exciting world of house flipping or you’re a seasoned real estate investor, our expertise at eFunder Capital makes us your prime choice among hard money rehab lenders in Pittsburgh. We specialize in hard money rehab loans, tailored to secure the perfect financing for your next property-flipping project. With extensive knowledge and a comprehensive suite of resources, we are adept at meeting the varied needs of individuals at any experience level. Trust us to ensure a smooth and successful journey in your real estate investment endeavors, right here in Pittsburgh and beyond.
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Starting Rates
Loans
Leverage in real estate heavily depends on your credit score and experience as an investor. For newcomers in our Pittsburgh and surrounding markets with less than stellar credit and limited experience (less than three flips in three years), most hard money lenders in PA often perceive this as a higher risk. This perception typically results in reduced leverage and a significant initial investment. For example, you might only receive a 60% Loan To Value (LTV) with a $100,000 down payment on a $250,000 property. Despite this, rehab hard money lenders might cover up to 75% of the After Repair Value (ARV) for renovations, answering the crucial question, “What is ARV in real estate?”
However, even new investors in the Pittsburgh and surrounding markets boasting impressive credit scores can qualify for up to 80% LTV, requiring just a $50,000 down payment on the same $250,000 property. Conversely, seasoned investors (minimum three flips in three years) with excellent credit can achieve leverage up to 90% LTV. This scenario results in only a 10% or $25,000 down payment for a $250,000 purchase. Moreover, lenders, particularly hard money lenders in Pittsburgh PA, cover 100% of renovation costs, up to 75% of the ARV. Understanding these nuances allows investors to make well-informed decisions and maximize their potential in the real estate market.
Real estate gurus often emphasize that having a great deal can make your credit less relevant to lenders, particularly when dealing with private lenders. Private lenders are typically individuals you know, like family or friends, who fund promising deals based on your track record, without scrutinizing your credit score. They might invest from their retirement accounts, cash value life insurance, or personal savings, making it more of a relationship-based lending process.
In contrast, institutional lenders, including hard money lenders, place significant importance on your credit score—often determining whether they’ll work with you, regardless of how profitable the deal may be. The minimum credit requirements may vary with market conditions, impacting your leverage and necessitating more upfront capital if your credit is near the minimum threshold. If you’re aware of your credit’s limitations, it’s wise to start working on improving it early on through resources like eFunderCredit.com.
What are the requirements?
Sales Contract
Corporate Documents (EIN, Articles of Organization, Operating Agreement)
Last Two Years of Federal Tax Returns (depends on the lender behind the loan)
Three Months of Bank Statements (account must show enough for your down payment and closing costs)
Photo ID (Driver License)
Experience Sheet (have your purchase and sold HUDs to prove your experience)
Our broker fee is two points (2% of the loan amount) on anything over $100,000 or four points on anything less than $100,000, or a minimum commission of $2,500, whichever is greater.
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