Hard Money Loans in Chelsea
You discovered this outstanding opportunity to renovate and flip this nice old home in a very good area and it seems like the deal you've been eagerly waiting on for a long time. Most folks know that knowledgeable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can make a typical profit of $40,000 to $50,000 in their rehab business. Of course, you also understand that their successes are credited to the fact that they are industry experts, are well versed in hard money loans, they understand market trends quite well and in addition, they are good at working an auction to buy their houses at a good price. Still, your rehab and remodeling knowledge isn't that bad either — in any case, you have already located a suitable general contractor to take on the project.
But where do you find the needed funding for flipping? When you approach a regular lender, much like a bank for a loan, it is more than likely going to take at least 4-8 weeks for the approval to come through and the money to be furnished. With all the home owners seeking a fast closing, that doesn't appear like a wise idea to you whatsoever.
On top of this, banks have been tightening their lending requirements in recent times, which makes it tough for someone to get a traditional loan if their credit rating is not flawless or he doesn't have a consistent salaried profession. So does that mean you have no option, but to drop your dream of venturing into rehabbing? Not at all, especially when Chelsea hard money loans can help you realize many amazing things in the real estate world.
Should you put in an application for a hard money home loan in Chelsea, you will get what's probably most essential to real estate offers throughout the country — a fast closing of around two weeks. What's more, the LTV value can range up to 70% of the place's valuation, as estimated by a certified appraiser. Some people regard hard money real estate loans to be more expensive than ordinary financing, because the interest rates for such loans usually start out at 10%. But usually, the interest rate is not as relevant for these loans, given that they are not long-term loans. When it comes to short-term loans of a few years or less, you should think of them much like you would other expenditures for your project. And once you have finally flipped the property or home, recovering this expense is the exact same as recovering the expense for the bathroom upgrades you performed.
Also, it's easy to obtain a hard money mortgage, even if your credit score is not that extraordinary. Chelsea hard money lenders do not approve a loan exclusively according to the borrower's credit score — rather they additionally assess the property or home, its valuation and location, and the home's capability to pay back the financing on its own. Adding to this, if the borrower can demonstrate prior experience in comparable real estate projects, can put down cash for the down payment, and the price of comparable homes in the vicinity works to his benefit, he will have an excellent chance of qualifying for a hard money real estate loan.
Searching for a hard money lender in Chelsea to help with expenses for your fix and flip endeavor is not very hard, provided that the opportunity that lies ahead of you is promising and possesses a strong potential for returns. Complete the contact form on this page or give us a call and let's talk about the project you have in mind.
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