Hard Money Loans in Andover
Suppose you've run into this truly good bargain for a fix and flip property you found in an ideal neighborhood, and you are either a seasoned real estate investor or a first-timer who wants to try his hand at flipping. Expert home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of hauling in a profit of $40-$50k as an average on more than one occassion. And yes, they are aided in a big way due to their professional experience, auction abilities and familiarity with hard money loans. Nonetheless, your rehab and renovation knowledge isn't bad either — aside from that, you have already located a suitable building contractor to take on this home.
But how can you get the needed financing for flipping? When you apply for an ordinary loan from the bank, you will wind up waiting approximately 30-60 days until eventually the money is authorized and your funding is ready to go. With all the home owners seeking a fast closing, that does not seem like a great idea to you whatsoever.
As well as this, in case you have a less-than-perfect credit rating or don't receive a conventional source of income, it can be harder for you to qualify for a bank loan, seeing the stricter loan requirements banks have issued recently. So does that leave you with no option, but to give up your dream of venturing into home renovating? By no means, because you can always use the Andover hard money loan approach to finance your flipping project.
A hard money home loan in Andover provides you with what's probably most essential to real estate investors — a quick closing time period of as little as two weeks. Additionally, loans can be done for up to 70% loan-to-value of the as-is value, as determined by a professional appraiser. Some individuals consider hard money real estate loans to be more pricey than regular financing, since the interest rates for such loans generally start off at 10%. But when you understand these are not long-term home loans, the rate of interest may be misleading. As it pertains to short-term loans of one or two years or less, you should look at them the same as you might for any other expense for your project. Once you have resold the property and have made a positive profit, you'll be able to get back this expense from the property or home — similar to recouping the money spent on the brand-new appliances for the kitchen that you installed.
Moreover, even someone with low credit can easily be eligible for a hard money mortgage. Andover hard money lenders do not take on a loan strictly judging by the person's credit score — instead they also analyze the home, its location and value, and the home's capability to pay back the financing without the help of the applicant. Additional criteria that have an impact on an individual's eligibility for a hard money real estate loan can include the amount he can put towards a down payment, his prior experience being a real estate investor, and price of comparative, just recently sold homes nearby.
So in the event you come across a good and lucrative investment opportunity, feel comfortable knowing you will have a hard money lender in Andover, ready to lend you the money you need. Fill out the form on this page or get in touch with us via phone to talk about your project.
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