Hard Money Loans in Cambridge
Suppose that you've come across this truly good deal on a fix and flip property located in a great location, and you're either an experienced real estate investor or a first-timer who wants to try his hand at flipping. A majority of people know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can readily earn a typical profit of $40,000 to $50,000 when they rehab properties. Of course, you also understand that their great results can be credited to the fact that they're professionals, are proficient in hard money loans, they know the marketplace quite well and furthermore, they know how to work a public auction to purchase their houses at a reasonable price. On the other hand, you are assured that your impressive rehab and renovation knowledge can help you do a quality job for this home — what's more, you already have arranged to have one of the best contractors in the area to take care of the project.
But where can you obtain the necessary capital for flipping? Should you apply for a traditional loan via a bank, you will need to wait somewhere around one to two months until the money is approved and your funding is ready. Since most sellers would prefer a fast closing, you may have to start seeking out additional financing options.
With banks establishing tougher loan guidelines in the past several years, it is now tougher for a self-employed individual to find a home loan, particularly if his credit circumstances are not flawless. So does this mean you have no option, but to give up your dream of venturing into flipping? Absolutely not, given that you also have the Cambridge hard money loan option.
If you decide to put in an application for a hard money home loan in Cambridge, you'll get what's possibly most essential to real estate transactions across the country — a fast closing of about a couple weeks. In addition, the LTV value can reach up to 70% of the property value, as evaluated by a credentialed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be higher in price than bank lending products. But the lengths of these loans are relatively shorter, which makes the interest rate less important. As it pertains to short-term loans of a few years or less, you should think about them the same as you would for every other expense for the project. Once you've turned the property or home and have made a good gain, you're able to recover this expense from the home — much like recuperating the cost of brand-new appliances for the kitchen that you have put in.
In addition, even a person with low credit can still qualify for a hard money mortgage. Instead of focusing primarily on the applicant's credit score or income, Cambridge hard money lenders, who may be a privately owned company or an individual person, say yes to a loan as a result of evaluating the home value, ease of marketability, its location, and the likelihood of recovering their capital if they have to foreclose the loan. On top of this, if the person can demonstrate prior experience in equivalent real estate endeavors, can put down cash for the down payment, and the value of equivalent houses in the area works in his favor, he will have a really good likelihood of being eligible to get a hard money real estate loan.
Finding a hard money lender in Cambridge to fund your flipping business is not very challenging, assuming that the opportunity that lies ahead of you is promising and possesses the right prospect for returns. Enter your info into the form on this page or get in touch with us via phone to discuss the project you have in mind.
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