Hard Money Loans in Billerica
A fabulous deal on a fix and flip opportunity located in a very good neighborhood all of a sudden shows up — seems too good to be true. Professional home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a profit of forty to fifty grand on a regular basis. Naturally, you also are aware that their successes are due to the simple fact that they're experts, are well versed in hard money loans, they understand the market really well and furthermore, they are good at working a public auction for getting an appropriate price. Still, your rehab and renovation skills aren't that bad either — in any case, you've already located the right building contractor to start this project.
But financing can be a separate issue altogether. A conventional lender, like for example a bank, takes a minimum of 1 to 2 months to authorize the loan and deliver the money. Since most sellers favor a fast closing, it may be best to begin looking for additional financing options.
With banks introducing harder loan criteria in the past several years, it's become harder for a self-employed person to find a mortgage loan, especially if his credit rating is not optimal. So will a shortage of funding stop you from sticking to your dream? Not at all, especially when Billerica hard money loans will assist you to achieve great things in real estate.
A hard money home loan in Billerica gives you what is possibly most crucial to real estate investors — a fast closing in as little as fourteen days. Additionally, loan amounts can be done for up to 70% loan-to-value of the "as is" house value, as established by a qualified appraiser. Some individuals consider hard money real estate loans to be more pricey than standard financing, since the lending rates for such loans typically start at 10%. But in reality, the lending rate is not as useful a measure for these loans, given that they will never be long-term financing. The price of such short-term loans should be evaluated on par with every other financial outlay that you would need to meet pertaining to the project. Once you've sold the house and have made a successful return, you're able to recoup this expense from the home — very much like recouping the money spent on the brand-new appliances for the kitchen that you put in.
Moreover, even an individual with poor credit can still be eligible for a hard money mortgage. Billerica hard money lenders don't authorize a loan solely according to the person's credit score — instead they additionally look at the home, its location and value, and the home's ability to pay back the financing on its own. Adding to this, if the individual can demonstrate prior experience in equivalent real estate projects, can put down cash for a down payment, and the cost of similar houses in the neighborhood works to his benefit, he has got a very good shot of being eligible to obtain a hard money real estate loan.
Finding a hard money lender in Billerica to help with expenses for your real estate project is not hard, so long as the opportunity that lies ahead of you is promising and offers a strong prospect for returns. Submit the contact form or give us a call to discuss the property you have in mind.
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