Hard Money Loans in Bedford
An outstanding deal on a fix and flip property located in a nice neighborhood all of a sudden shows up — sounds so good that it is difficult to believe. Expert home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a gain of $40-$50k as an average on more than one occasion. Naturally, you also realize that their great results are attributed to the fact that they're industry experts, are well versed in hard money loans, they understand the market quite well and they also are good at working a public auction to buy their properties at a good price. Nevertheless, you are assured that your impressive rehab and remodeling abilities will help you do an outstanding job on this house — in addition, you have already arranged to have one of the best contractors in the business to take care of this job.
But funding is often a separate problem entirely. A conventional lending institution, for instance a bank, takes a minimum of 1-2 months to consent to the financing and provide the cash. With all the home owners looking for a fast closing, that doesn't appear to be a wise idea to you at all.
Moreover, should you have a sub-optimal credit situation or don't receive a regular income, it may be tougher to be eligible for a bank loan, seeing the more stringent loan requirements banks have put in place of late. So will inadequate financing stop you from following your dream? Most certainly not, given that you always have the Bedford, Massachusetts hard money loan alternative.
A hard money home loan in Bedford provides you with what is perhaps most important to real estate investors — a quick closing time of as little as 14 days. What's more, the LTV value can reach up to 70% of the place's valuation, as estimated by a certified appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank financing. But usually, the rate of interest is not as relevant for these loans, because they aren't long-term loans. Short-term loans of a couple months to a few years are best looked at as cost of capital, very much like all other expenditures in connection with a project. And once you've flipped the house, recovering this expense is comparable to recouping the expense for all the bathroom or other updates you did.
Aside from that, hard money mortgages are not hard to qualify for, even if you have got bad credit. The person's credit score is not the sole determining factor for Bedford hard money lenders — in addition, they look at the property, its market valuation, where it is located, and its ability to return their financial commitment if things do not go as intended. Adding to that, if the individual can demonstrate prior experience in similar real estate projects, can put down money towards a down payment, and the cost of comparable houses in the vicinity works in his favor, he stands a good chance of being approved to obtain a hard money real estate loan.
So should you come across a very good and profitable flipping opportunity, relax knowing you will have a hard money lender in Bedford, able to loan you the capital you will need. Complete the form on this page or call us to discuss the property you have in mind.
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