Hard Money Loans in Deerfield
Imagine you've run into this really great deal on a fix and flip property located in an ideal neighborhood, and you are either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Everybody knows that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, are able to make an average profit of $40,000 to $50,000 on their home projects. Of course, you also are aware that their success are credited to the fact that they're industry experts, are proficient in hard money loans, they know the marketplace quite well and furthermore, they know how to work an auction for getting a reasonable price. On the other hand, you are convinced that your first class rehab and renovation abilities can help you do a great job for this project — in addition, you have already lined up one of the best contractors in town to take on the job.
But where can you find the necessary funding for flipping? A traditional lender, like for example a bank, takes no less than one to two months to approve the loan and release the funds. Since the majority of home owners prefer a fast closing, it may be best to start seeking out other financing options.
With banks establishing harder loan requirements in the past several years, it has become more difficult for a self-employed individual to find a home loan, especially if his credit situation is not flawless. So does that mean you are without an option, but to give up your dream to venture into home flipping? Definitely not, given that you also have the Deerfield, Massachusetts hard money loan alternative.
A hard money home loan in Deerfield gives you what's viewed as vital to most real estate deals — a quick closing of only a few weeks and oftentimes less. Further, loan amounts are made up to 70% loan-to-value of the as-is valuation, as calculated by a professional appraiser. A number of people believe hard money real estate loans to be more costly than customary loans, since the interest rates for such loans often start off at 10%. But in reality, the interest rate isn't as relevant for these loans, given that they will never be long-term loans. The price tag on such short-term loans should be considered much like any other cost that you will have to meet for the project. Right after you fix up and resell the property, recuperating this expense is the same as recuperating the expense for home appliances you placed into the place.
Apart from this, hard money mortgages are not hard to qualify for, even when you have got very bad credit. The customer's credit score is not the single determining factor for Deerfield hard money lenders — in addition, they consider the house, its market value, its location, and its capacity to return their investment if things do not work out as planned. Several other criteria that affect a borrower's eligibility for a hard money real estate loan can include what amount of money he can put into a down payment, his previous experience being a real estate investor, and price of similar, recently sold homes in the neighborhood.
So in the event you run into a good and profitable investment opportunity, relax knowing you will have a hard money lender in Deerfield, prepared to loan you the money that you need. Complete the form or give us a call and let's discuss your project.
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