Hard Money Loans in Boxford
A fabulous deal on a fix and flip property located in a nice neighborhood suddenly shows up — seems too good to be true. You've probably heard that competent property flippers, similar to the married couple on HGTV's Flip or Flop, enjoy an impressive average return near forty to fifty thousand dollars. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction talents have had a big part in their results. On the other hand, you are certain that your first class rehab and renovation abilities will help you do an outstanding job on this property — what's more, you already have lined up one of the best building contractors in the business to work on the project.
But how exactly do real estate investors obtain capital? A standard lender, for instance a bank, takes at least 1-2 months to consent to the mortgage and deliver the capital. Given that sellers would rather have a fast closing, you may want to start looking for additional financing options.
With banks bringing in tougher loan guidelines in the past several years, it is now harder for a self-employed person to find a home loan, especially if his credit circumstances are not optimal. So does that leave you with no option, but to drop your aspiration of venturing into rehabbing? Absolutely not, because you always have the Boxford, Massachusetts hard money loan alternative.
When you get a hard money home loan in Boxford, you'll get what's perhaps most essential to real estate offers throughout the country — a fast closing of around two weeks. Also, hard money lenders are capable of doing lending up to 70% LTV of the home value, as established by a certified third-party appraiser. With loan rates starting off around 10%, hard money real estate loans might seem, initially, to be higher priced as compared with traditional bank lending products. But when you consider these are not long-term mortgage loans, the interest rate may be misleading. The price of such short-term loans should be looked at on par with any other expenditure that you would have to meet pertaining to the project. Once you have turned the property and have made a good profit, you can recover this expense from the home — just like recouping the money spent on the brand-new appliances for the kitchen that you've installed.
Moreover, even an individual with weak credit will be able to qualify for a hard money mortgage. Instead of focusing exclusively on the borrower's credit score or wages, Boxford hard money lenders, who may be a private company or an individual person, say yes to a loan as a result of examining the home value, ease of marketability, its location, and the odds of recuperating their money in case of foreclosure. The amount that a borrower can put down beforehand for the property or home, how much practical experience he has in real estate investing, and price range of equivalent homes in the same neighborhood are additional factors that go into analyzing an individual's eligibility for a hard money real estate loan.
So in case you have found an excellent fixer-upper with a high potential for returns, you have also found yourself a hard money lender in Boxford that's happy to fund your fix and flip projects. Enter your info into the form or call us to discuss the property or properties you have in mind.
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