Hard Money Loans in Branford
A fantastic bargain on a fix and flip property located in a good area of the city shows up out of the blue — sounds too good to be true. You've probably heard that professional property flippers, much like the married couple on HGTV's Flip or Flop, have a remarkable average return close to $40,000 – $50,000. It goes without saying their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have played a big part in their success. Nonetheless, your rehab and remodeling skills aren't bad either — in any case, you have already identified a suitable general contractor to take on the project.
But how do you get the necessary capital for flipping? When you go after a regular loan from the bank, you will have to wait around somewhere around 4-8 weeks up until the financing is approved and your funding is ready. With the sellers looking for a fast closing, that doesn't appear like a good idea to you whatsoever.
To add to it, banks have already been tightening their lending requirements as of late, rendering it more difficult for someone to get a conventional loan if their credit rating is not flawless or he doesn't have a consistent salaried profession. So do you have to admit defeat and abandon your aspiration to embark into fix and flips? Most certainly not, seeing as you also have the Branford hard money loan alternative.
If you decide to apply for a hard money home loan in Branford, you're going to get what is perhaps most vital to real estate purchases throughout the country — a very fast closing of around a couple weeks. Furthermore, hard money lenders can approve lending up to 70% LTV of the home value, as estimated by a credentialed third-party evaluation. Some people believe hard money real estate loans to be higher priced than regular financing, because the lending rates of such loans commonly start at 10%. But if you appreciate that these loans are not long-term mortgage loans, the interest rate tends to be misleading. The price of such short-term loans should be viewed much like every other financial outlay that you will have to meet for the project. Once you have sold the home and have made a successful profit, you're able to reclaim this expense from the property or home — similar to recovering the money spent on the brand-new home appliances that you've installed.
Furthermore, even a person with low credit can still qualify for a hard money mortgage. Branford hard money lenders don't approve a loan solely judging by the customer's credit score — instead they additionally evaluate the property or home, its value and location, and the property's capability to pay back the financing by itself. Additional criteria that impact an applicant's acceptance for a hard money real estate loan can include what amount of money he is able to put towards a down payment, his prior experience being a real estate investor, and price of comparative, recently sold residences in the area.
If you happen to have stumbled on a really good real estate opportunity with a huge potential for returns, you've also discovered a hard money lender in Branford that's happy to provide financing for your fix and flip venture. Complete the form on this page or give us a call and let's discuss the project you have in mind.
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