Hard Money Loans in Andover
Suppose you've stumbled upon this really great bargain on a fix and flip property in a terrific neighborhood, and you are either a skilled real estate investor or a first-timer who wants to try his hand at flipping. You may have heard that professional property flippers, much like the married couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin of around $40,000 – $50,000. And sure, they are aided in a big way via their professional experience, auction expertise and familiarity with hard money loans. Nonetheless, your rehab and renovation skills aren't bad either — in any case, you've already located a suitable general contractor to start the job.
But how can real estate investors get funding? A typical lending institution, for instance a bank, takes at the very least 1 to 2 months to approve the financing and hand over the capital. Since the majority of home owners would prefer a fast closing, you may have to begin seeking out other funding options.
What's more, in case you have a less-than-perfect credit rating or do not have a regular source of income, it may be more challenging to obtain bank financing, with the stricter loan guidelines banks have introduced recently. So does this leave you with no option, but to give up your ambition to venture into the fix and flip business? Under no circumstances, particularly when Andover hard money loans will assist you to achieve great things in the real estate market.
If you decide to opt for a hard money home loan in Andover, you will get what's probably most important to real estate negotiations throughout the country — a fast closing of about 2 weeks. In addition, the LTV value can range up to 70% of the property's valuation, as determined by a certified appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank financing. But usually, the rate of interest is not as pertinent for these loans, simply because they aren't long-term financing. When it comes to short-term loans of a few years or less, you should consider them just like you would other expenditures for your project. Once you've sold the home and have made a good profit, you're able to get back this expense from the house — much like recuperating the money spent on the brand-new kitchen appliances that you have put in.
Furthermore, even a person with bad credit can easily be eligible for a hard money mortgage. As an alternative for focusing only on the person's credit score or net income, Andover hard money lenders, who may be a privately owned company or an individual person, authorize a loan as a result of analyzing the home value, its marketability, where it is located, and the probability of getting back their money should they have to foreclose the loan. How much of their own money a person can put upfront towards the home, his real estate experience, and selling price of comparable properties in the vicinity are additional factors that go into ascertaining a person's eligibility for a hard money real estate loan.
So any time you come across a really good and worthwhile investment opportunity, relax knowing you'll have a hard money lender in Andover, able to loan you the cash you will need. Fill out the contact form or call us to discuss the property you have in mind.
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