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Suppose that you've come across this really great bargain on a fix and flip property in a terrific location, and you are either a seasoned real estate investor or a first-timer who is looking to try his hand at flipping. Professional house flippers, much like the young couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a profit of $40-$50k on a consistent basis. And indeed, they are helped in a major way as a result of their professional experience, auction abilities and familiarity with hard money loans. Having said that, you have likewise been brushing up your rehab and remodeling skills, have got a licensed contractor lined up and are confident that you're capable of doing a bang up job for this home.
But where can real estate investors obtain money? For those who opt for a normal bank loan, you will end up waiting approximately one to two months up until the time the mortgage loan is approved and your funds are ready to go. Due to the fact all the home owners are looking for a fast closing, that doesn't seem like a good idea to you at all.
On top of this, banks have been tightening up their lending standards in recent years, rendering it more challenging for someone to receive an ordinary home loan if their credit circumstances are not flawless or he is lacking a consistent salaried occupation. So will a lack of funds prevent you from sticking to your aspirations? Absolutely not, given that you always have the Maine hard money loan option.
A hard money home loan in Maine provides you with what is possibly most essential to real estate investors — a very fast closing in as few as a few weeks. Also, hard money lenders are capable of doing lending up to 70% LTV of the property value, as established by a credentialed third-party appraiser. Some individuals regard hard money real estate loans to be more pricey than standard loans, since the lending rates of such loans usually start off at 10%. But the lengths of these loans are quite short, making the interest rate far less significant. Short-term loans of several months to a handful of years are best approached as cost of capital, the same as any other expense associated with a project. Once you've turned the property and have made a successful gain, you can recover this expense from the home — very much like recuperating the money necessary for the brand-new appliances for the kitchen that you have installed.
Furthermore, even a person with poor credit can easily be eligible for a hard money mortgage. Rather than focusing entirely on the person's credit score or net income, Maine hard money lenders, who may be a private company or an individual person, authorize a loan as a result of assessing the property value, its marketability, where it is located, and the likelihood of recuperating their capital in the event of foreclosure. The amount that an applicant can put down beforehand for the property, how much practical experience he has in real estate investing, and selling price of comparative properties in the same vicinity are other factors that go into determining an applicant's qualification for a hard money real estate loan.
Locating a hard money lender in Maine to help with expenses for your flipping business is not very hard, assuming that the opportunity that lies before you is promising and offers a good potential for returns. Submit the contact form or call us to talk about the property or properties you have in mind.
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