Hard Money Loans in Chesapeake Beach

You discovered this outstanding possibility for renovating and flipping this wonderful old house in a fantastic part of town and it looks a lot like the one you have been anticipating for quite a while. You've probably heard that competent property flippers, such as the couple on HGTV's Flip or Flop, turn a remarkable average profit near $40,000 – $50,000. Without question, their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have played a big part in their success. Still, your rehab and remodeling skills aren't that bad either — aside from that, you have already found a suitable building contractor to take on the home.

But where can you find the needed funding for home flipping? A traditional lending institution, like for example a bank, takes no less than 1 to 2 months to consent to the loan and hand over the capital. With the home owners looking for a fast closing, that doesn't seem like a good idea to you in the slightest.

Moreover, should you have a less-than-perfect credit situation or don't receive a routine income source, it can be more difficult for you to be eligible for a bank loan, seeing the tighter loan requirements banks have put in place lately. So does that mean you are without an option, but to give up your aspiration of venturing into the fix and flip business? Never, due to the fact you could always go the Chesapeake Beach hard money loan route to finance your home flipping project.

A hard money home loan in Chesapeake Beach offers you what is deemed vital to most real estate transactions — a very fast closing of just a 2-3 weeks and at many times even less. Besides that, hard money lenders are capable of doing lending up to 70% LTV of the home value, as established by a credentialed third-party appraiser. With the lending rates starting out around 10%, hard money real estate loans may seem, at first, to be higher in price compared to conventional bank financing. But when you appreciate that these are not long-term mortgage loans, the rate tends to be misleading. As it pertains to short-term loans of several years or less, you should think about them the same as you would for any other expense for your project. Once you have sold the house and have made a good financial gain, you can reclaim this expense from the property or home — very much like recovering the money necessary for the brand-new home appliances that you put in.

Besides, hard money mortgages are easy qualifying, regardless if you posses a bad credit score. Chesapeake Beach hard money lenders don't authorize a loan exclusively on the basis of the person's credit score — instead they will analyze the home, its valuation and location, and the property's ability to pay back the financing by itself. Adding to this, if the borrower can demonstrate prior experience in similar real estate endeavors, can place down money towards the down payment, and the value of comparative houses in the vicinity works to his benefit, he has got an excellent shot of qualifying for a hard money real estate loan.

So in the event you run into a really good and worthwhile flipping opportunity, feel comfortable knowing you will have a hard money lender in Chesapeake Beach, equipped to lend you the funds that you need. Submit the contact form or give us a call and let's talk about your project.

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