Hard Money Loans in Danbury
Imagine you've come across this excellent deal on a fix and flip property in an ideal location, and you are either a skilled real estate investor or a first-timer who wants to try out flipping houses. Professional home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of $40-$50k on average. And indeed, they are helped in a big way due to their professional knowledge, auction abilities and familiarity with hard money loans. Still, your rehab and remodeling knowledge isn't bad either — aside from that, you have already found an ideal general contractor to start the project.
But how can real estate investors find money? Should you approach a standard lender, such as a bank for a loan, it's likely going to take no less than 4-8 weeks for your acceptance to come through and the money to be dispersed. Because most sellers favor a fast closing, you might have to begin looking for other funding options.
On top of this, banks have been tightening up their lending requirements in recent times, making it difficult for someone to obtain an ordinary home loan if their credit circumstances are not perfect or he is lacking a regular salaried profession. So does this leave you with no other option, but to drop your dream of venturing into the fix and flip business? Not at all, particularly when Danbury hard money loans can help you realize many amazing things in real estate.
A hard money home loan in Danbury provides what is considered essential to most real estate deals — a quick closing of only a couple of weeks and oftentimes even less. What's more, the LTV value can go up to 70% of the home's valuation, as evaluated by a credentialed appraiser. Some individuals regard hard money real estate loans to be higher priced than standard financing, because the interest rates for these loans commonly start off at 10%. But usually, the rate of interest is not as pertinent for these loans, since they aren't long-term financing. The price tag on such short-term loans ought to be viewed much like any other expense that you might encounter during the project. After you renovate and sell off the house, recuperating this expense is the same as recouping the expense for home appliances you put in the property.
In addition, even an individual with weak credit can easily be eligible for a hard money mortgage. The person's credit score is not the sole deciding factor for Danbury hard money lenders — in addition, they consider the house, its market value, its location, and its ability to bring back their financial commitment if things do not go as intended. On top of that, if the person can demonstrate prior experience in equivalent real estate projects, can place down money for a down payment, and the value of comparative properties in the vicinity works to his benefit, he has got a very good shot of qualifying to get a hard money real estate loan.
So any time you run into a really good and lucrative flipping opportunity, relax knowing you will have a hard money lender in Danbury, equipped to lend you the cash you may need. Submit the contact form or give us a call to discuss your property or properties.
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