Hard Money Loans in Canterbury
A fantastic deal on a fix and flip property in a very good area of the city suddenly shows up — seems so good that it is difficult to believe. A majority of people know that skilled professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to turn a typical profit of $40,000 to $50,000 in their rehab business. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have played a significant part in their successes. Having said that, you have recently been brushing up your rehab and renovation skills, have got a general contractor ready for the project and are certain that you're capable of doing a bang up job for this home.
But financing is a separate question altogether. For those who approach a regular lending institution, such as a bank for a loan, it can take, at a minimum, four to eight weeks for your acceptance to come through and your money to be furnished. With all the sellers wanting a fast closing, that doesn't seem like a wise idea to you whatsoever.
On top of this, banks have already been tightening up their lending standards in recent times, which makes it challenging for someone to get a typical home loan if their credit situation is not perfect or he does not possess a regular salaried profession. So does this leave you with no other option, but to give up your aspiration to venture into flipping? By no means, on the grounds that you could always use the Canterbury, Connecticut hard money loan approach to finance your flipping project.
A hard money home loan in Canterbury can provide what is deemed crucial to most real estate deals — a quick closing of only a few weeks and more often than not less. Also, hard money lenders can do lending up to 70% LTV of the home's valuation, as calculated by a professional third-party evaluator. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more pricey than bank loans. But usually, the interest rate isn't as pertinent for these loans, because they are not long-term financing. When it comes to short-term loans of a handful of years or even less, you should think of them the same as you would for any other expense for your project. And as soon as you have finally turned the property, recovering this expense is identical to recuperating the expense for all the bathroom improvements you did.
What's more, it is simple to be eligible for a a hard money mortgage, regardless if your credit situation is not that superb. Canterbury hard money lenders do not take on a loan exclusively according to the person's credit score — instead they also assess the property, where it is located and how much it is worth, and the property's capacity to pay back the loan by itself. Additional criteria that affect an applicant's approval for a hard money real estate loan can include the amount he is in a position to put into a down payment, his previous experience being a real estate investor, and selling price of similar, fairly recently sold residences in the area.
So in case you have stumbled upon an excellent fixer-upper with a significant prospect of returns, you have also discovered a hard money lender in Canterbury who's happy to provide funding for your fix and flip project. Enter your info into the form or give us a call to talk about the project you have in mind.
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