Hard Money Loans in Bedford
A fantastic deal on a fix and flip opportunity located in a nice subdivision suddenly shows up — sounds so good that it is difficult to believe. Professional residential home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to earn a profit of $40-$50k for most homes. And indeed, they are helped in a major way as a result of their professional experience, auction skills and familiarity with hard money loans. Having said that, you've recently been developing your rehab and renovation skills, have a very good general contractor ready to go and are confident that you can do a great job on this property.
But funding is usually a separate question altogether. A standard lender, like for example a bank, takes at least 1 to 2 months to authorize the financing and deliver the funds. Because most sellers prefer a fast closing, you might want to begin searching for some other funding alternatives.
With banks adding tougher loan criteria in the past several years, it is now harder for a self-employed person to find a home loan, especially if his credit rating is not perfect. So should you stop trying and forego your dream to embark into real estate? Under no circumstances, particularly when Bedford hard money loans will assist you to accomplish great things in the real estate world.
Should you opt for a hard money home loan in Bedford, you're going to get what's perhaps most important to real estate negotiations throughout the country — a quick closing of around 14 days. What's more, the LTV value can reach up to 70% of the property's valuation, as determined by a credentialed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank financing. But if you consider these are not long-term loans, the rate of interest tends to be misleading. The price tag on such short-term loans should be considered much like every other financial outlay that you would have to meet for the project. When you have resold the property or home and have made a successful profit, you'll be able to get back this expense from the property or home — just like recovering the cost of brand-new home appliances that you've put in.
Aside from that, hard money mortgages are not difficult to qualify for, regardless if you have below-average credit. The borrower's credit score is not the single deciding factor for Bedford hard money lenders — they also examine the home, how much it is worth, where it is located, and its potential to earn back their financial commitment if things do not work out as intended. How much of their own money a person can put upfront towards the home, his past real estate experience, and selling price of comparable properties in the same area are other factors that go into analyzing a person's qualification for a hard money real estate loan.
So should you run into an outstanding and worthwhile investment opportunity, rest assured you will have a hard money lender in Bedford, ready to loan you the funds you may need. Submit the form or get in touch with us via phone to discuss the property you have in mind.
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