Hard Money Loans in Bethel
Suppose you've encountered this really great deal for a fix and flip property located in a great neighborhood, and you happen to be either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. Everyone knows that capable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can readily make an average profit of forty to fifty thousand dollars when they rehab properties. It's fair to say their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have had an important part in their successes. Nonetheless, your rehab and renovation knowledge isn't bad either — aside from that, you've already located an ideal general contractor to start this job.
But capital is often a separate issue altogether. A traditional lender, like for example a bank, takes a minimum of 1-2 months to authorize the loan and deliver the monies. Considering that the sellers want a fast closing, that doesn't seem like a good idea to you at all.
Moreover, in case you have a sub-optimal credit situation or don't have a conventional income source, it can be tougher to be eligible for a bank loan, considering the tighter loan guidelines banks have issued of late. So does that leave you with no other option, but to drop your dream of venturing into home flipping? Certainly not, because you also have the Bethel, Connecticut hard money loan alternative.
A hard money home loan in Bethel promises what is perhaps most crucial to real estate investors — a fast closing in as few as 2 weeks. In addition, the LTV value can reach up to 70% of the place's valuation, as estimated by a certified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be higher priced than bank loans. But usually, the interest rate is not as useful a measure for these loans, since they will never be long-term loans. The price of such short-term loans should be considered on par with every other financial outlay that you will have to meet for the project. When you have resold the property or home and have made a successful gain, you can recover this expense from the property — very much like recouping the money spent on the brand-new home appliances that you have put in.
Furthermore, even an individual with low credit can still qualify for a hard money mortgage. As an alternative for focusing entirely on the applicant's credit score or source of income, Bethel hard money lenders, who can be a privately owned company or an individual person, approve a loan after examining the property value, its marketability, its location, and the likelihood of getting back their capital if they have to foreclose the loan. The amount that a borrower can put down in advance for the house, how much experience he has in real estate investing, and selling price of equivalent properties in the same vicinity are additional details that go into ascertaining an applicant's eligibility for a hard money real estate loan.
Locating a hard money lender in Bethel to cover expenses for your renovation project is not difficult, so long as the opportunity that lies ahead of you is promising and offers a good potential for returns. Fill out the form on this page or get in touch with us via phone to discuss the property you have in mind.
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