Hard Money Loans in Burlington
An incredible bargain on a fix and flip property located in a very good neighborhood all of a sudden shows up — sounds too good to be true. Everyone knows that skilled professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can readily make a typical profit margin of $40,000 to $50,000 when they rehab properties. And indeed, they are helped in a big way as a result of their professional knowledge, auction abilities and familiarity with hard money loans. However, you are assured that your superb rehab and remodeling abilities will enable you to do an outstanding job on the project — additionally, you already have lined up one of the best building contractors in the business to take care of this project.
But how can you get the necessary financing for home flipping? For those who opt for a normal loan from the bank, you will wind up waiting roughly 1-2 months until the mortgage loan is approved and the money is readily available. Since most home owners prefer a fast closing, you might need to begin seeking out other funding alternatives.
On top of this, banks have already been tightening their lending requirements as of late, which makes it challenging for a person to receive a traditional loan if their credit rating is not perfect or he is lacking a regular salaried job. So will inadequate financing prevent you from following your ambitions? Definitely not, given that you also have the Burlington hard money loan alternative.
A hard money home loan in Burlington provides what's probably most important to real estate investors — a very fast closing in as few as fourteen days. In addition, the LTV value can range up to 70% of the property value, as evaluated by a competent appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more costly than bank loans. But once you consider these are not long-term home loans, the rate of interest can be misleading. When it comes to short-term loans of several years or less, you should think about them identical to any other expense for the project. After you rehab and sell off the home, recouping this expense is just like recuperating the money you spent for stainless steel appliances you put in the place.
Besides, hard money mortgages are easy qualifying, even if you have bad credit. As an alternative for focusing entirely on the borrower's credit score or income, Burlington hard money lenders, who can be a privately owned company or an individual person, approve a loan as a result of examining the property value, its marketability, where it is located, and the probability of getting back their capital should they have to foreclose the loan. On top of that, if the applicant can demonstrate past experience in equivalent real estate projects, can place down cash towards a down payment, and the price of comparable properties in the neighborhood works in his favor, he stands an excellent shot of qualifying to get a hard money real estate loan.
So in the event you run into an outstanding and worthwhile investment opportunity, be assured you will have a hard money lender in Burlington, ready to loan you the capital you will need. Fill out the form or call us and let's discuss your property.
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