Hard Money Loans in Chelsea
Suppose you've run into this excellent bargain on a fix and flip property in an ideal location, and you are either an experienced real estate investor or a newbie who hopes to try his hand at flipping. Professional house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a profit of forty to fifty grand on a consistent basis. Of course, you also understand that their great results can be attributed to the simple fact that they're industry experts, are well versed in hard money loans, they understand the market quite well and additionally, they know how to work an auction for getting a good deal. Nevertheless, you are certain that your impressive rehab and renovation skills will assist you to do a superb job for this home — what's more, you've already lined up one of the premier general contractors in town to handle the job.
But how do real estate investors get funding? A standard lending institution, like for example a bank, takes at a minimum 1-2 months to authorize the financing and hand over the monies. With all the home owners looking for a fast closing, that does not appear to be a good idea to you in the slightest.
As well as this, for those who have a less-than-perfect credit situation or do not have a routine income source, it may be more challenging for you to be eligible for a a bank loan, with the stricter loan criteria banks have put in place of late. So does that mean you are without an option, but to give up your aspiration of getting into rehabbing? Never, because you could always use the Chelsea, Massachusetts hard money loan approach to fund your home renovating project.
A hard money home loan in Chelsea promises what is probably most desired by real estate investors — a quick closing time period of as few as 2 weeks. Further, loan amounts can be done for up to 70% loan-to-value of the "as is" valuation, as deemed by a licensed appraiser. Some people believe hard money real estate loans to be more expensive than standard financing, since the lending rates for such loans usually start off at 10%. But the lengths of these loans tend to be comparatively short, which makes the interest rate much less important. When it comes to short-term loans of one or two years or even less, you should consider them identical to any other expenditure for your project. And as soon as you've sold the property, recouping this expense is the exact same as recouping the expense for the bathroom or other improvements you did.
Also, it is easy to be eligible for a hard money mortgage, even in the event your credit score is not that impressive. The applicant's credit score is not the primary determining factor for Chelsea hard money lenders — in addition, they evaluate the home, what is it valued at, where it is located, and its ability to earn back their investment if everything does not go as intended. On top of that, if the individual can demonstrate prior experience in comparable real estate ventures, can put down money towards a down payment, and the cost of comparative properties in the area works in his favor, he will have a really good chance of being eligible to obtain a hard money real estate loan.
So any time you run into a very good and lucrative flipping opportunity, be assured you will have a hard money lender in Chelsea, equipped to loan you the cash you'll need. Enter your info into the form on this page or give us a call and let's talk about your project.
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