Hard Money Loans in Bridgeport
An incredible deal on a fix and flip opportunity located in a good area of the city shows up out of the blue — sounds so good that it's difficult to believe. Everyone knows that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can make an average profit margin of $40,000 to $50,000 in their rehab business. Without question, their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction talents have been large factors to their results. Having said that, you've recently been brushing up your rehab and renovation knowledge, have a licensed contractor arranged and are positive that you're capable of doing an impressive job on this home.
But where do you get the needed funding for home flipping? If you get in touch with a customary lending institution, much like a bank for a loan, it likely will take, at a minimum, four to eight weeks for the acceptance to be completed and your funds to be accessible. With the home owners seeking a fast closing, that doesn't appear to be a good option to you whatsoever.
What's more, should you have a sub-optimal credit situation or do not receive a consistent income, it usually is more challenging to qualify for bank financing, seeing the tighter loan criteria banks have introduced in recent times. So will a lack of funding keep you from sticking with your ambitions? Certainly not, on the grounds that you could always go the Bridgeport hard money loan route to finance your home renovating project.
A hard money home loan in Bridgeport gives you what is viewed as essential to most real estate sales — a fast closing of only a few weeks and more often than not less. Further, loans can be done for up to 70% loan-to-value of the "as is" home value, as deemed by a professional appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank lending products. But the lengths of these loans are comparatively shorter, making the interest rate far less significant. Short-term loans of a couple of months to a handful of years are best thought of as cost of capital, the same as any other financial outlay associated with a project. And as soon as you've finally sold the property, recuperating this expense is identical to recovering the expense for the bathroom upgrades you performed.
Besides, hard money mortgages are easy qualifying, even in the event you have less-than-perfect credit. Instead of focusing only on the person's credit score or net income, Bridgeport hard money lenders, who can be a private company or an individual person, approve a loan after analyzing the property value, its salability, its location, and the likelihood of getting back their capital should they have to foreclose the loan. Other variables that impact a person's acceptance for a hard money real estate loan include what amount of money he is able to put towards a down payment, his prior experience being a real estate investor, and price range of comparable, just recently sold residences in the area.
So any time you come across a very good and worthwhile flipping opportunity, be assured you will have a hard money lender in Bridgeport, willing to lend you the capital you may need. Submit the form or give us a call to discuss your property.
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