Hard Money Loans in Clinton
Imagine you've run into this truly good deal on a fix and flip property you found in a terrific location, and you're either a skilled real estate investor or a newbie who wants to try his hand at flipping. You've heard that competent property flippers, like the married couple on HGTV's Flip or Flop, enjoy a remarkable average return of around $40,000 – $50,000. And without a doubt, they are helped in a major way via their professional knowledge, auction abilities and familiarity with hard money loans. Still, your rehab and renovation knowledge isn't that bad either — aside from that, you've already found an ideal contractor to handle the job.
But how can you get the necessary financing for home flipping? For those who opt for a traditional loan via a bank, you will end up waiting around approximately 30-60 days up until the time the financing is approved and your funding is available. So if you happen to be wishing for a fast closing, it is important to realize that this will cost you a couple weeks, making you lose out on the opportunity.
To add to it, banks have been tightening their lending criteria as of late, which makes it hard for people to get an ordinary loan if their credit situation is not perfect or he does not possess a regular salaried profession. So will a shortage of financing stop you from pursuing your aspirations? Under no circumstances, especially while Clinton, Connecticut hard money loans will assist you to realize many amazing things in the real estate world.
A hard money home loan in Clinton promises what's possibly most crucial to real estate investors — a very fast closing in as little as two weeks. And additionally, loans are made up to 70% loan-to-value of the "as is" house's valuation, as calculated by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more expensive than bank loans. But if you consider these loans are not long-term home loans, the rate of interest tends to be misleading. When it comes to short-term loans of a few years or less, you should think about them identical to any other expenditure for your project. Once you have resold the home and have made a positive return, you can get back this expense from the property — just like recouping the money spent on the brand-new home appliances that you have installed.
Moreover, even individuals with weak credit can easily qualify for a hard money mortgage. The borrower's credit score will not be the lone deciding factor for Clinton hard money lenders — additionally, they evaluate the home, its market valuation, its location, and its capability to earn back their investment if things do not go as planned. Several other factors that influence an individual's eligibility for a hard money real estate loan include what amount of money he is able to put towards a down payment, his past experience as a real estate investor, and price range of comparable, just recently sold residences in the vicinity.
So should you come across an outstanding and worthwhile investment opportunity, be assured you'll have a hard money lender in Clinton, prepared to loan you the money you may need. Complete the contact form or give us a call to talk about the property or properties you have in mind.
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