Hard Money Loans in Chelsea

An outstanding bargain on a fix and flip opportunity in an excellent neighborhood shows up out of the blue — sounds so good that it is difficult to believe. Everybody knows that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can earn an average profit of $40,000 to $50,000 in their rehab business. No need to explain that their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction skills have had a big part in their successes. Still, your rehab and renovation knowledge isn't that bad either — besides, you have already found a suitable contractor to take on the job.

But how can real estate investors obtain capital? A traditional lending institution, say for example a bank, takes a minimum of 1 to 2 months to authorize the financing and release the money. Considering that all the home owners are seeking a fast closing, that does not seem like a great idea to you at all.

With banks introducing harder loan criteria in recent years, it is more challenging for a self-employed person to obtain a mortgage loan, especially when his credit score is not optimal. So do you have to admit defeat and forego your ambition to venture into fix and flips? By no means, on the grounds that you can always use the hard money loan approach to fund your rehab project.

If you should put in an application for a hard money home loan in , you'll get what's possibly most vital to real estate purchases throughout the country — a quick closing of about a couple weeks. What's more, the LTV value can reach up to 70% of the property value, as evaluated by a certified appraiser. Some people regard hard money real estate loans to be more expensive than regular loans, considering lending rates for such loans generally start at 10%. But when you consider these are not long-term loans, the rate of interest may be misleading. When it comes to short-term loans of a few years or even less, you should think about them just like you would other expenditures for your project. Right after you fix up and sell off the house, recuperating this expense is the same as recouping the cost of the stainless steel appliances you placed into the property.

Besides, hard money mortgages are not difficult to qualify for, whether or not you have very bad credit. Rather than focusing entirely on the person's credit score or income, hard money lenders, who may be a privately owned company or an individual person, authorize a loan as a result of analyzing the property value, how easy it will be to market, its location, and the likelihood of recovering their money in case they have to foreclose the loan. On top of that, if the borrower can demonstrate past experience in similar real estate projects, can place down money towards a down payment, and the cost of comparable properties in the neighborhood works in his favor, he has a very good chance of being approved to get a hard money real estate loan.

So in case you have found a really good real estate opportunity with a huge probability of returns, you've also found yourself a hard money lender in that's prepared to provide financing for your flipping projects. Submit the form on this page or call us to talk about your property or properties.

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Investment property loans only please, no primary residences at this time.