Hard Money Loans in Biddeford
Suppose that you've run into this excellent bargain on a fix and flip property located in an ideal location, and you are either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. You may have heard that veteran home flippers, similar to the husband and wife on HGTV's Flip or Flop, turn an impressive average profit close to $40,000 – $50,000. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have been large factors to their success. On the other hand, you're convinced that your impressive rehab and remodeling knowledge will help you do a quality job on this property — what's more, you have already lined up one of the best contractors in the business to handle this job.
But money can be a different problem entirely. Should you opt for an ordinary loan from the bank, you will wind up waiting around somewhere around 1 to 2 months until eventually the mortgage is approved and your funding is available. So if you are wishing for a fast closing, it's important to understand that this could set you back by weeks, making you miss out on the house.
Moreover, for those who have a less-than-perfect credit rating or don't have a regular source of income, it is normally more challenging to qualify for a bank loan, with the tighter loan criteria banks have put in place of late. So must you stop trying and abandon your ambition to venture into real estate? Not at all, especially when Biddeford hard money loans can help you achieve many amazing things in the real estate market.
A hard money home loan in Biddeford provides what's perhaps most important to real estate investors — a very fast closing time period of as little as two weeks. Furthermore, hard money lenders can approve loans up to 70% LTV of the home's valuation, as estimated by a certified third-party appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be higher in price than bank financing. But in reality, the lending rate isn't as pertinent for these loans, since they aren't long-term loans. The cost of such short-term loans ought to be looked at on par with any other expenditure that you will have to meet for the project. And when you've sold the property or home, recuperating this expense is identical to recovering the expense for all the bathroom or other improvements you performed.
Moreover, even individuals with low credit can still qualify for a hard money mortgage. As an alternative for focusing strictly on the borrower's credit score or source of income, Biddeford hard money lenders, who can be a private company or an individual person, say yes to a loan as a result of analyzing the property value, its salability, where it is located, and the likelihood of recuperating their money in the event of foreclosure. How much a borrower can put down in advance for the property, how much practical experience he has in real estate investing, and selling price of comparable homes in the vicinity are additional details that go into determining a person's qualification for a hard money real estate loan.
So any time you run into an outstanding and profitable investment opportunity, be assured you'll have a hard money lender in Biddeford, able to loan you the capital you need. Complete the form on this page or give us a call to discuss your property.
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