Hard Money Loans in Bethel
Suppose you've run into this excellent deal for a fix and flip property in an ideal neighborhood, and you happen to be either an experienced real estate investor or a first-timer who really wants to try his hand at flipping. Expert home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping series, are able to haul in a gain of forty to fifty grand on average. Of course, you also understand that their success are attributed to the simple fact that they are professionals, are well versed in hard money loans, they know market trends really well and additionally, they know how to work a public auction to purchase their houses at a good deal. Nonetheless, your rehab and remodeling skills aren't that bad either — in any case, you have already identified a good building contractor to take on the home.
But where do you get the necessary funding for flipping? A standard lender, like for example a bank, takes no less than one to two months to authorize the mortgage and hand over the money. Due to the fact the home owners are seeking a fast closing, that does not appear to be a good option to you whatsoever.
With banks bringing in tougher loan criteria in the recent past, it has become more difficult for a self-employed individual to obtain a home loan, particularly if his credit situation is not flawless. So should you give up and forego your dream to embark into real estate? Certainly not, because you could always go the Bethel hard money loan route to fund your home renovating project.
A hard money home loan in Bethel provides what's perhaps most desired by real estate investors — a fast closing in as little as two weeks. Additionally, loan amounts can be made up to 70% loan-to-value of the as-is valuation, as determined by a licensed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be costlier than bank financing. But in reality, the interest rate is not as pertinent for these loans, because they will never be long-term financing. As it pertains to short-term loans of a few years or less, you should think of them just like you would other expenses for the project. Once you have sold the property or home and have made a good gain, you're able to recoup this expense from the property or home — similar to recouping the cost of brand-new appliances for the kitchen that you have put in.
Apart from this, hard money mortgages are not difficult to qualify for, even if you have below-average credit. Bethel hard money lenders do not authorize a loan solely on the basis of the person's credit score — rather they additionally analyze the property, its location and value, and the property's ability to pay back the financing without the assistance of the applicant. Additional criteria that impact an applicant's approval for a hard money real estate loan include how much money he is able to put towards a down payment, his prior experience as a real estate investor, and selling price of similar, recently sold residences in the neighborhood.
So if you have stumbled upon a wonderful fixer-upper with a significant chance of returns, you have also discovered a hard money lender in Bethel who's willing to finance your rehab venture. Submit the contact form or get in touch with us via phone and let's talk about your property or properties.
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