Hard Money Loans in Chelmsford
An outstanding buy on a fix and flip opportunity located in an excellent neighborhood all of a sudden shows up — sounds too good to be true. You've probably heard that competent house flippers, similar to the married couple on HGTV's Flip or Flop, turn an impressive average profit of around forty to fifty thousand dollars. Of course, you also are aware that their success can be credited to the simple fact that they are experts, are well versed in hard money loans, they know the market quite well and they also are good at working a public auction to buy their houses at an appropriate price. Nevertheless, you're convinced that your first class rehab and renovation knowledge will help you do a great job on this property — furthermore, you already have arranged to have one of the most suggested building contractors in the business to take on the job.
But how do real estate investors get funding? A standard lender, like for example a bank, takes at a minimum 1 to 2 months to consent to the financing and release the monies. Due to the fact the home owners want a fast closing, that does not seem like a great idea to you in the slightest.
With banks adding tougher loan standards in recent times, it is now much harder for a self-employed individual to find a mortgage loan, especially if his credit circumstances are not optimal. So must you give up and forego your aspiration to embark into the real estate market? Never, because you could always go the Chelmsford, Massachusetts hard money loan route to finance your home flipping project.
A hard money home loan in Chelmsford boasts what's possibly most sought after by real estate investors — a fast closing time period of as little as two weeks. In addition, the LTV value can go up to 70% of the place's valuation, as estimated by a certified appraiser. Some individuals regard hard money real estate loans to be costlier than ordinary loans, because the interest rates of such loans normally start out at 10%. But when you consider these loans are not long-term loans, the interest rate can be misleading. Short-term loans of a couple of months to a few years are best approached in terms of cost of capital, the same as any other expense in connection with a project. Right after you renovate and unload the home, recouping this expense is the same as recovering the one for new kitchen appliances you put in the property.
In addition, even a person with low credit will be able to qualify for a hard money mortgage. The person's credit score will not be the lone deciding factor for Chelmsford hard money lenders — additionally, they examine the property, what is it valued at, its location, and its ability to earn back their financial commitment if things do not go as intended. How much a person can put down in advance towards the property, how much practical experience he has in real estate investments, and price range of equivalent homes in the area are additional factors that go into ascertaining an individual's qualification for a hard money real estate loan.
So in case you have stumbled on a really great fixer-upper with a significant probability of returns, you've also discovered a hard money lender in Chelmsford that's prepared to provide funding for your flipping venture. Complete the contact form or call us and let's discuss the property or properties you have in mind.
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