Hard Money Loans in Bourne
Suppose you've encountered this truly good bargain on a fix and flip property you found in a great location, and you're either an experienced real estate investor or a newbie who hopes to try his hand at flipping. You may have heard that competent house flippers, like the married couple on HGTV's Flip or Flop, turn a remarkable average profit close to $40,000 – $50,000. Of course, you also realize that their success are due to the simple fact that they're industry experts, are knowledgeable in hard money loans, they know the market really well and they also are good at working a public auction for getting a reasonable price. Still, your rehab and renovation skills aren't bad either — in any case, you have already found the right general contractor to take on this project.
But where can real estate investors find funds? In the event you meet with a common lender, such as a bank for a mortgage loan, it's more than likely going to take a minimum of thirty to sixty days for your acceptance to come through and your funds to be accessible. With the home owners looking for a fast closing, that doesn't seem like a wise idea to you at all.
With banks bringing in more challenging loan criteria in the past several years, it has become much harder for a self-employed individual to get a home loan, particularly if his credit rating is not optimal. So does this mean you have no option, but to abandon your ambition of venturing into home flipping? By no means, particularly while Bourne, Massachusetts hard money loans can help you accomplish great things in the real estate world.
A hard money home loan in Bourne can provide what is deemed crucial to many real estate sales — a quick closing of only a couple of weeks and more often than not less. Further, loan amounts can be made up to 70% loan-to-value of the as-is house value, as calculated by a professional appraiser. With the interest rates starting off near 10%, hard money real estate loans may seem, at first, to be more pricey in comparison with conventional bank financing. But once you consider these are not long-term home loans, the interest rate may be misleading. When it comes to short-term loans of 1 or 2 years or less, you should look at them the same as you might for every other expense for your project. Once you have sold the home and have made a successful profit, you can get back this expense from the house — similar to recouping the cost of brand-new appliances for the kitchen that you've put in.
Moreover, even an individual with weak credit will be able to qualify for a hard money mortgage. Bourne hard money lenders don't authorize a loan strictly based on the person's credit score — instead they also examine the property, its value and location, and the home's capability to pay back the loan without the assistance of the borrower. Additional criteria that have an impact on an individual's eligibility for a hard money real estate loan include how much money he is able to put towards a down payment, his previous experience as a real estate investor, and price range of comparable, recently sold properties in the area.
So in the event you come across a very good and worthwhile flipping opportunity, relax knowing you'll have a hard money lender in Bourne, prepared to lend you the cash you'll need. Complete the contact form or give us a call to talk about the property or properties you have in mind.
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