Hard Money Loans in Auburn
A fantastic deal on a fix and flip property in a good neighborhood shows up out of the blue — seems so good that it is hard to believe. You may have heard that professional home flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average return of around forty to fifty thousand dollars. Undoubtedly, you also know that their success can be attributed to the simple fact that they are experts, are proficient in hard money loans, they know the marketplace quite well and additionally, they know how to work a public auction for getting an appropriate price. Still, your rehab and renovation skills aren't that bad either — in any case, you have already identified a good contractor to start the job.
But money can be a different question entirely. If you approach a regular lending institution, like a bank for a loan, it very likely will take, at a minimum, 30-60 days for the approval to be completed and your money to be sent out. With all the sellers looking for a fast closing, that doesn't appear like a good idea to you in the slightest.
Furthermore, if you have a less-than-perfect credit score or don't have a routine income source, it is normally more difficult for you to be eligible for a bank financing, seeing the stricter loan guidelines banks have issued lately. So does this mean you have no option, but to give up your dream to venture into home renovating? By no means, especially when Auburn, Massachusetts hard money loans can help you achieve many amazing things in the real estate market.
A hard money home loan in Auburn gives you what is perhaps most crucial to real estate investors — a fast closing time period of as few as 14 days. In addition, the LTV value can go up to 70% of the home's valuation, as evaluated by a competent appraiser. Some individuals regard hard money real estate loans to be more pricey than regular loans, considering interest rates for such loans often start out at 10%. But the time frames of these loans are quite short, which means the interest rate is far less important. The price of such short-term loans ought to be looked at much like every other expense that you would have to meet pertaining to the project. Right after you remodel and resell the home, recuperating this expense is just like recovering the money you spent for stainless steel appliances you installed in the home.
Furthermore, even someone with poor credit can easily qualify for a hard money mortgage. Auburn hard money lenders do not approve a loan exclusively on the basis of the person's credit score — instead they also evaluate the home, its location and value, and the home's capacity to pay back the loan on its own. Adding to that, if the borrower have proven experience in similar real estate ventures, can place down money towards the down payment, and the price of equivalent homes in the neighborhood works in his favor, he has got an excellent likelihood of qualifying to get a hard money real estate loan.
So if you have found an excellent real estate opportunity with a significant probability of returns, you have also stumbled upon a hard money lender in Auburn who's happy to finance your fix and flip ventures. Enter your info into the form on this page or get in touch with us via phone and let's discuss the property or properties you have in mind.
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