Hard Money Loans in Acton
There's this amazing opportunity to renovate and flip this nice outdated home in a fantastic area and it seems a lot like the deal you have been anticipating for quite a while. You've heard that competent property flippers, much like the couple on HGTV's Flip or Flop, enjoy an impressive average profit margin close to $40,000 – $50,000. And yes, they are aided in a major way due to their professional know-how, auction skills and familiarity with hard money loans. Nonetheless, your rehab and renovation knowledge isn't that bad either — aside from that, you have already found a good contractor to take on this project.
But financing can be a different problem altogether. For those who meet with a customary lending institution, like a bank for funding, it is more than likely going to take at least thirty to sixty days for your acceptance to be completed and the funds to be given out. With the home owners looking for a fast closing, that doesn't appear like a good option to you at all.
To add to it, banks have been tightening their lending criteria in recent times, making it tough for someone to receive a conventional home loan if their credit circumstances are not flawless or he does not possess a regular salaried profession. So does that leave you with no option, but to abandon your ambition of venturing into home flipping? Absolutely not, because you also have the Acton, Massachusetts hard money loan option.
A hard money home loan in Acton provides what is deemed imperative to most real estate sales — a very fast closing of only a few weeks and at many times even less. Additionally, loans can be made up to 70% loan-to-value of the "as is" property value, as deemed by a professional appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank financing. But the lengths of these loans are comparatively shorter, which means the rate is much less significant. As it pertains to short-term loans of a handful of years or less, you should think about them much like you would other expenditures for the project. And as soon as you have turned the house, recuperating this expense is the exact same as recovering the expense for the kitchen and bath improvements you performed.
In addition, even individuals with bad credit can still qualify for a hard money mortgage. Acton hard money lenders do not take on a loan exclusively based on the applicant's credit score — instead they additionally look at the property, its valuation and location, and the home's ability to pay back the financing without the assistance of the applicant. Several other variables that impact a person's eligibility for a hard money real estate loan can include how much he is in a position to put towards a down payment, his previous experience being a real estate investor, and price range of comparable, just recently sold residences nearby.
So in case you have found an excellent home to flip with a significant probability of returns, you have also discovered a hard money lender in Acton that is prepared to finance your flipping project. Enter your info into the contact form or give us a call to talk about your property.
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