Hard Money Loans in Clinton
A fantastic buy on a fix and flip property in an excellent area of the city all of a sudden shows up — seems too good to be true. Expert house flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a gain of forty to fifty grand on average. Of course, you also are aware that their results are credited to the fact that they're industry experts, are well versed in hard money loans, they know market trends quite well and in addition, they are good at working an auction for getting a reasonable deal. However, you are certain that your superb rehab and remodeling knowledge will enable you to do an outstanding job on the project — what's more, you've already lined up one of the premier general contractors in the business to handle this job.
But where precisely do real estate investors obtain capital? A conventional lending institution, like for example a bank, takes no less than one to two months to authorize the financing and deliver the money. Given that home owners give preference to a fast closing, you might want to start searching for other funding alternatives.
What's more, should you have a less-than-perfect credit rating or don't receive a regular source of income, it may be more challenging to be eligible for a bank loan, with the tighter loan requirements banks have issued lately. So does that mean you have no option, but to abandon your aspiration to venture into flipping? Never, due to the fact you could always go the Clinton, Massachusetts hard money loan route to pay for your rehab project.
A hard money home loan in Clinton boasts what's probably most desired by real estate investors — a very fast closing in as little as a few weeks. Plus, the LTV value can reach up to 70% of the property's valuation, as estimated by a certified appraiser. At first, hard money real estate loans, with starting interest rates of 10%, appear to be higher priced than bank lending products. But in reality, the rate of interest is not as useful a measure for these loans, because they will never be long-term financing. As it pertains to short-term loans of 1 or 2 years or less, you should think of them the same as you would for every other expenditure for your project. And as soon as you've finally turned the home, recuperating this expense is the exact same as recuperating the expense for all the kitchen and bath upgrades you performed.
What's more, it's simple to obtain a hard money mortgage, even if your credit situation is not that great. The borrower's credit score will not be the single determining factor for Clinton hard money lenders — they also consider the home, its market valuation, where it is located, and its capability to earn back their investment if things should not work out as intended. Several other criteria that have an impact on an individual's approval for a hard money real estate loan can include how much money he can put towards a down payment, his previous experience being a real estate investor, and price of comparable, fairly recently sold homes nearby.
So in the event you run into a good and lucrative investment opportunity, rest assured you'll have a hard money lender in Clinton, prepared to lend you the cash that you need. Fill out the form or give us a call to talk about your property.
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