Hard Money Loans in Ashland
You discovered this outstanding possibility for renovating and flipping this nice outdated property in a good part of town and it seems like the deal you've been eagerly waiting on for a long time. Everyone knows that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can readily make a typical profit of $40,000 to $50,000 when they rehab properties. Undoubtedly, you also realize that their results are attributed to the simple fact that they are experts, are knowledgeable in hard money loans, they know the marketplace really well and additionally, they know how to work an auction for getting an appropriate deal. Nevertheless, you are convinced that your first class rehab and remodeling abilities can help you do an outstanding job for this home — in addition, you've already arranged to have one of the best contractors in the area to work on the project.
But where can you find the needed funding for home flipping? For those who meet with a regular lending institution, like a bank for a loan, it very likely will take a minimum of 4-8 weeks for your approval to come through and the funds to be dispersed. With all the sellers seeking a fast closing, that doesn't seem like a good idea to you whatsoever.
To add to it, banks have already been tightening up their lending standards as of late, rendering it more hard for someone to obtain a conventional loan if their credit circumstances are not flawless or he doesn't have a consistent salaried job. So does that mean you are without an option, but to abandon your dream of getting into flipping? Not at all, especially while Ashland, Massachusetts hard money loans will assist you to realize many amazing things in the real estate market.
If you should obtain a hard money home loan in Ashland, you have access to what is perhaps most important to real estate transactions across the country — a quick closing of approximately a couple weeks. Besides that, hard money lenders can approve lending up to 70% LTV of the home's valuation, as determined by a qualified third-party appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as costlier than bank financing. But when you understand these are not long-term mortgage loans, the interest rate can be misleading. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, very much like any other expenditure associated with a project. And once you have flipped the property or home, recouping this expense is the exact same as recovering the expense for all the kitchen and bath updates you did.
Also, it's easy to be eligible for a hard money mortgage, even if your credit rating is not that great. The borrower's credit score is not the single deciding factor for Ashland hard money lenders — in addition, they look at the house, its market valuation, its location, and its ability to earn back their financial commitment if everything does not go as intended. Several other variables that affect a customer's approval for a hard money real estate loan can include the amount he can put into a down payment, his prior experience being a real estate investor, and price of comparative, recently sold residences in the vicinity.
So should you come across a good and profitable investment opportunity, be assured you will have a hard money lender in Ashland, in a position to loan you the cash you'll need. Fill out the contact form or call us and let's talk about the project you have in mind.
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