Hard Money Loans in Berlin
A fabulous bargain on a fix and flip opportunity located in a very good area of the city shows up out of the blue — seems too good to be true. Professional home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are able to bring in a profit of $40-$50k as an average on multiple occasions. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction skills have been large factors to their results. Still, your rehab and renovation skills aren't that bad either — besides, you've already identified the right licensed contractor to tackle the home.
But funding is often a different question altogether. If you approach a regular lender, such as a bank for a mortgage loan, it's in all likelihood going to take, at the very least, thirty to sixty days for your approval to come through and your money to be sent out. With all the sellers looking for a fast closing, that doesn't seem like a wise idea to you in the slightest.
With banks introducing tougher loan criteria in the past several years, it is now much harder for a self-employed person to get a mortgage loan, particularly if his credit situation is not optimal. So must you stop trying and abandon your dream to get into fix and flips? Never, due to the fact you could always use the Berlin, Connecticut hard money loan approach to pay for your rehab project.
A hard money home loan in Berlin boasts what is possibly most essential to real estate investors — a very fast closing in as few as 2 weeks. In addition, the LTV value can range up to 70% of the home value, as evaluated by a credentialed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more pricey than bank lending options. But if you consider these loans are not long-term loans, the rate may be misleading. The price tag on such short-term loans ought to be viewed much like every other financial outlay that you would encounter during the project. And when you've sold the property or home, recovering this expense is comparable to recouping the expense for the bathroom or other updates you did.
In addition, even an individual with weak credit can easily qualify for a hard money mortgage. Rather than focusing exclusively on the applicant's credit score or net income, Berlin hard money lenders, who may be a privately owned company or an individual person, say yes to a loan after analyzing the home value, how easy it will be to market, where it is located, and the likelihood of recovering their money should they have to foreclose the loan. Several other criteria that impact an applicant's eligibility for a hard money real estate loan can include how much he is in a position to put into a down payment, his past experience being a real estate investor, and price of comparable, fairly recently sold homes in the neighborhood.
Finding a hard money lender in Berlin to fund your real estate project is not very hard, as long as the opportunity in front of you is promising and possesses a good potential for returns. Enter your info into the form or get in touch with us via phone to discuss the property you have in mind.
A loan specialist will be in touch shortly