Hard Money Loans in Darien
You discovered this phenomenal possibility for renovating and flipping this nice outdated home in a very good area and it seems a lot like the one you have been wanting for quite a while. Expert home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping series, are able to haul in a gain of forty to fifty grand as an average on more than one occasion. And indeed, they are helped in a big way by their professional knowledge, auction abilities and understanding of hard money loans. Nevertheless, you are assured that your impressive rehab and renovation skills will help you do a great job for this property — furthermore, you already have arranged to have one of the best general contractors in town to take on this job.
But financing is usually a separate issue entirely. In the event you apply for an ordinary bank loan, you will have to wait somewhere around 1 to 2 months up until the time the money is authorized and the money is readily available. Because most sellers give preference to a fast closing, it may be advisable to start searching for some other financing options.
Moreover, in case you have an unfavorable credit score or do not have a consistent source of income, it can be tougher to be eligible for a bank financing, considering the more stringent loan criteria banks have introduced of late. So does this mean you are without an option, but to abandon your dream of venturing into home flipping? Most certainly not, because you also have the Darien hard money loan option.
A hard money home loan in Darien provides what's viewed as imperative to most real estate transactions — a fast closing of just a 2-3 weeks and oftentimes less. And additionally, financing can be made up to 70% loan-to-value of the as-is home's valuation, as determined by a licensed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more expensive than bank lending options. But the time frames of these loans tend to be quite shorter, which makes the rate much less important. The price of such short-term loans should be viewed much like any other cost that you will encounter in the course of the project. And when you've sold the house, recouping this expense is identical to recovering the expense for all the kitchen and bath improvements you did.
Furthermore, even someone with bad credit can easily qualify for a hard money mortgage. The person's credit score is not the exclusive determining factor for Darien hard money lenders — additionally, they consider the property, what is it valued at, where it is located, and its potential to earn back their investment if everything does not go as planned. Several other criteria that affect an individual's acceptance for a hard money real estate loan can include how much he is able to put into a down payment, his past experience being a real estate investor, and price of similar, just recently sold residences in the area.
So in the event you come across an outstanding and worthwhile flipping opportunity, relax knowing you will have a hard money lender in Darien, able to loan you the cash you will need. Submit the contact form on this page or call us to talk about your project.
A loan specialist will be in touch shortly