Hard Money Loans in Cabot
You discovered this phenomenal possibility for renovating and flipping this wonderful old home in a good area and it seems like the deal you've been eagerly waiting on for a long time. Expert home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a gain of $40-$50k on a consistent basis. And indeed, they are helped in a big way via their professional knowledge, auction expertise and familiarity with hard money loans. Nonetheless, your rehab and remodeling knowledge isn't that bad either — aside from that, you have already found an ideal licensed contractor to start the home.
But where do you obtain the necessary funding for home flipping? A conventional lender, like for example a bank, takes a minimum of 1-2 months to consent to the loan and release the funds. With the sellers looking for a fast closing, that doesn't appear like a great idea to you in the slightest.
With banks establishing tougher loan guidelines in recent years, it is more challenging for a self-employed person to obtain a home loan, especially when his credit score is not flawless. So does that leave you with no option, but to drop your dream of getting into rehabbing? Certainly not, given that you also have the Cabot hard money loan option.
Should you obtain a hard money home loan in Cabot, you have access to what is probably most vital to real estate negotiations across the country — a very fast closing of about 2 weeks. What's more, the LTV value can reach up to 70% of the property's valuation, as determined by a credentialed appraiser. With the lending rates starting out at about 10%, hard money real estate loans might seem, at first glance, to be more pricey as compared with conventional bank financing. But usually, the rate of interest is not as relevant for these loans, simply because they are not long-term financing. Short-term loans of a couple of months to a few years are best looked at in terms of cost of capital, very much like any other expense associated with a project. After you fix up and sell the home, recuperating this expense is the same as recovering the money you spent for stainless steel appliances you installed in the home.
Besides, hard money mortgages are easy qualifying, even when you have a bad credit rating. Cabot hard money lenders don't approve a loan exclusively judging by the person's credit score — rather they additionally assess the home, its valuation and location, and the property's capability to pay back the loan without the help of the borrower. On top of this, if the individual can demonstrate prior experience in similar real estate ventures, can place down money towards a down payment, and the price of similar properties in the area works to his benefit, he has got a good chance of qualifying to get a hard money real estate loan.
Finding a hard money lender in Cabot to finance your real estate project is not very hard, provided that the opportunity in front of you is promising and has the right prospect for returns. Fill out the form or call us to talk about your property.
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