Hard Money Loans in Cambridge
Imagine you've stumbled upon this excellent deal for a fix and flip property you found in a terrific location, and you happen to be either an experienced real estate investor or a newbie who is looking to try out flipping houses. You've probably heard that veteran property flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average profit of around forty to fifty thousand dollars. And indeed, they are helped in a major way due to their professional experience, auction skills and understanding of hard money loans. However, you're convinced that your first class rehab and remodeling skills will help you do a superb job on this home — additionally, you've already arranged to have one of the best general contractors in town to work on the project.
But how can you get the necessary capital for home flipping? Should you approach a customary lender, like a bank for financing, it's likely going to take no less than thirty to sixty days for your approval to come through and your funds to be given out. Since most home owners give preference to a fast closing, you might have to begin seeking out some other financing alternatives.
On top of this, banks have already been tightening up their lending criteria in recent times, rendering it more tough for people to get a traditional home loan if their credit circumstances are not perfect or he doesn't have a regular salaried job. So will a shortage of funding prevent you from following your aspirations? Under no circumstances, particularly while Cambridge hard money loans enable you to accomplish many amazing things in the real estate market.
A hard money home loan in Cambridge provides what is deemed vital to many real estate deals — a fast closing of just a 2-3 weeks and oftentimes even less. And additionally, loans can be done for up to 70% loan-to-value of the as-is valuation, as deemed by a professional appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank loans. But usually, the lending rate is not as relevant for these loans, simply because they will never be long-term financing. As it pertains to short-term loans of 1 or 2 years or less, you should think about them just like you would other expenses for the project. When you have turned the property or home and have made a positive gain, you'll be able to recoup this expense from the house — just like recuperating the money spent on the brand-new appliances for the kitchen that you have put in.
What's more, it's easy to be eligible for a hard money mortgage, regardless of whether your credit situation is not that great. Cambridge hard money lenders don't take on a loan solely according to the borrower's credit score — instead they will assess the property, its location and value, and the property's capability to pay back the financing by itself. How much a borrower can put down beforehand for the home, how much experience he has in real estate investments, and price range of comparable homes in the neighborhood are additional details that go into ascertaining an individual's suitability for a hard money real estate loan.
So in the event you run into a very good and lucrative investment opportunity, feel comfortable knowing you will have a hard money lender in Cambridge, willing to loan you the cash you may need. Complete the contact form or call us and let's discuss your property.
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