Hard Money Loans in Charlestown
A fabulous deal on a fix and flip property in a good subdivision suddenly shows up — sounds too good to be true. You've probably heard that professional house flippers, such as the married couple on HGTV's Flip or Flop, turn an impressive average return of around forty to fifty thousand dollars. And yes, they are helped in a major way via their professional knowledge, auction expertise and understanding of hard money loans. Still, your rehab and renovation knowledge isn't bad either — aside from that, you've already identified an ideal licensed contractor to tackle the job.
But funding is a different issue entirely. When you opt for a normal bank loan, you will have to wait approximately 4-8 weeks up until the financing is authorized and the money is available. Given that sellers would rather have a fast closing, you might need to begin searching for some other financing alternatives.
With banks adding tougher loan requirements in the past few years, it's become more challenging for a self-employed person to get a mortgage loan, especially if his credit circumstances are not perfect. So does this leave you with no other option, but to abandon your dream of venturing into flipping? Under no circumstances, particularly when Charlestown hard money loans will assist you to accomplish great things in the real estate market.
A hard money home loan in Charlestown gives you what's deemed essential to most real estate sales — a quick closing of just a 2-3 weeks and more often than not even less. Aside from that, loans can be done for up to 70% loan-to-value of the as-is house value, as calculated by a professional appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as higher priced than bank loans. But the lengths of these loans tend to be fairly short, making the rate much less significant. When it comes to short-term loans of 1 or 2 years or even less, you should consider them much like you would other expenditures for your project. And when you have flipped the home, recouping this expense is comparable to recovering the expense for the kitchen and bath upgrades you performed.
Apart from this, hard money mortgages are not difficult to qualify for, even if you have got very bad credit. The applicant's credit score isn't the lone determining factor for Charlestown hard money lenders — in addition, they analyze the home, its market valuation, its location, and its potential to earn back their investment if everything does not go as intended. On top of this, if the person have proven experience in similar real estate endeavors, can put down money for a down payment, and the value of equivalent homes in the neighborhood works in his favor, he has an excellent likelihood of qualifying for a hard money real estate loan.
Searching for a hard money lender in Charlestown to finance your fix and flip endeavor is not very challenging, so long as the opportunity that lies ahead of you is promising and possesses the right prospect for returns. Enter your info into the contact form on this page or get in touch with us via phone to discuss the property you have in mind.
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