Hard Money Loans in Chicopee
Suppose that you've run into this excellent bargain for a fix and flip property you found in an ideal neighborhood, and you're either an experienced real estate investor or a newbie who hopes to try out flipping homes. Most folks know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can readily earn an average profit of $40,000 to $50,000 in their rehab business. And without a doubt, they are aided in a major way due to their professional knowledge, auction expertise and knowledge of hard money loans. Nonetheless, your rehab and remodeling knowledge isn't that bad either — in any case, you've already located a good contractor to handle this home.
But where do real estate investors get funds? A traditional lending institution, for instance a bank, takes no less than 1-2 months to authorize the financing and deliver the capital. Thus if you are looking for a fast closing, you must recognize that this could set you back by a few weeks, causing you to lose out on the house.
With banks bringing in more challenging loan requirements in recent times, it is now much harder for a self-employed person to obtain a home loan, particularly if his credit rating is not flawless. So must you give up and abandon your aspiration to embark into the real estate market? Absolutely not, because you always have the Chicopee hard money loan option.
A hard money home loan in Chicopee offers what is viewed as crucial to most real estate transactions — a fast closing of just a couple of weeks and more often than not even less. Plus, the LTV value can reach up to 70% of the home value, as determined by a credentialed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank lending products. But once you appreciate that these loans are not long-term loans, the rate can be misleading. Short-term loans of a couple of months to a handful of years are best understood as cost of capital, the same as any other expense related to a project. And once you've sold the house, recouping this expense is the exact same as recuperating the expense for the bathroom or other upgrades you did.
Besides, hard money mortgages are easy qualifying, even in the event you have got poor credit. The borrower's credit score is not the single determining factor for Chicopee hard money lenders — they also examine the home, its market valuation, its location, and its capability to return their investment if everything does not go as intended. How much money an individual can put down in advance for the property or home, how much experience he has in real estate investments, and selling price of comparable homes in the same area are other details that go into establishing an individual's eligibility for a hard money real estate loan.
So if you have stumbled on a wonderful real estate opportunity with a huge probability of returns, you've also discovered a hard money lender in Chicopee who's willing to fund your fix and flip projects. Complete the contact form or call us to discuss the project you have in mind.
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