Hard Money Loans in Bristol
A fabulous bargain on a fix and flip opportunity located in a nice area of the city shows up out of the blue — sounds too good to be true. You've heard that competent home flippers, much like the husband and wife on HGTV's Flip or Flop, turn an impressive average profit close to forty to fifty thousand dollars. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have been large factors to their successes. However, you are certain that your impressive rehab and renovation talents will enable you to do a superb job for this project — what's more, you've already lined up one of the best building contractors in the area to take care of this project.
But where can you obtain the needed financing for flipping? In the event you go after a traditional loan from the bank, you will have to wait around approximately 30-60 days up until the time the mortgage loan is authorized and the funding is ready to go. So if you happen to be anticipating a fast closing, you need to realize that this may set you back by weeks, making you miss out on the house.
On top of this, banks have been tightening their lending standards as of late, which makes it challenging for people to obtain a conventional home loan if their credit rating is not flawless or he does not possess a regular salaried job. So will inadequate funds keep you from following your ambitions? Absolutely not, seeing as you also have the Bristol hard money loan option.
A hard money home loan in Bristol provides what's viewed as vital to many real estate sales — a fast closing of only a few weeks and more often than not less. Also, hard money lenders are able to do funding up to 70% LTV of the property's valuation, as identified by a licensed third-party evaluator. With interest rates starting off at about 10%, hard money real estate loans may appear, initially, to be higher in price when compared with conventional bank loans. But in reality, the interest rate isn't as relevant for these loans, because they are not long-term financing. The price tag on such short-term loans ought to be looked at on par with every other cost that you might encounter in the course of the project. After you renovate and sell the home, recuperating this expense is no different than recouping the money you spent for stainless steel appliances you placed into the property.
Aside from that, hard money mortgages are not hard to qualify for, whether or not you have got a bad credit rating. Bristol hard money lenders don't approve a loan strictly based on the applicant's credit score — rather they will analyze the home, its value and location, and the property's ability to pay back the financing without the help of the applicant. On top of this, if the individual can demonstrate past experience in comparable real estate ventures, can place down money for the down payment, and the price of comparable properties in the area works in his favor, he will have a very good chance of being eligible to get a hard money real estate loan.
Locating a hard money lender in Bristol to finance your renovation project is not hard, as long as the opportunity before you is promising and offers the right potential for returns. Complete the form or give us a call to talk about your project.
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