Hard Money Loans in Bethany
An outstanding buy on a fix and flip opportunity located in an excellent neighborhood shows up out of the blue — sounds too good to be true. You've probably heard that professional house flippers, much like the husband and wife on HGTV's Flip or Flop, turn an impressive average profit of around forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction talents have had a big part in their success. Nevertheless, you are assured that your impressive rehab and renovation knowledge can help you do a quality job on the home — what's more, you have already arranged to have one of the most recommended general contractors in town to handle the job.
But where precisely can real estate investors obtain funds? In the event you get in touch with a common lending institution, such as a bank for funding, it's very likely going to take, as a minimum, thirty to sixty days for the approval to come through and the funds to be furnished. Since the majority of sellers favor a fast closing, it may be advisable to start seeking out additional funding alternatives.
With banks bringing in harder loan requirements in the past several years, it has become harder for a self-employed individual to get a home loan, especially when his credit rating is not flawless. So will a shortage of funding stop you from following your aspirations? Certainly not, seeing as you also have the Bethany, Connecticut hard money loan option.
If you should put in an application for a hard money home loan in Bethany, you'll get what is probably most vital to real estate negotiations throughout the country — a very fast closing of about a couple weeks. Besides that, hard money lenders can approve lending up to 70% LTV of the property or home value, as calculated by a licensed third-party evaluator. At first, hard money real estate loans, with starting lending rates of 10%, seem to be costlier than bank loans. But the lengths of these loans are relatively shorter, making the interest rate much less important. The price of such short-term loans ought to be evaluated on par with any other financial outlay that you will have to meet pertaining to the project. Right after you rehab and resell the property, recovering this expense is no different than recovering the one for home appliances you installed in the place.
Also, it isn't difficult to qualify for a hard money mortgage, even when your credit situation is not that extraordinary. Bethany hard money lenders do not approve a loan exclusively judging by the borrower's credit score — instead they also evaluate the property, its location and value, and the property's capability to pay back the loan without the help of the applicant. How much money a person can put down in advance for the property or home, how much practical experience he has in real estate investments, and price range of comparable homes in the same vicinity are other factors that go into establishing a person's suitability for a hard money real estate loan.
So in case you have found a really great fixer-upper with a high probability of returns, you've also stumbled upon a hard money lender in Bethany that's ready to finance your flipping projects. Submit the contact form or give us a call and let's discuss the property you have in mind.
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