Hard Money Loans in Derby Line
You discovered this amazing opportunity to fix and flip this wonderful outdated home in a fantastic location and it looks a lot like the one you have been wanting for quite a while. Everyone knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can turn a typical profit of forty to fifty thousand dollars on their home projects. Of course, you also understand that their success are due to the fact that they are professionals, are knowledgeable in hard money loans, they understand market trends really well and they also are good at working an auction to buy their houses at an appropriate price. That said, you've recently been cultivating your rehab and remodeling skills, have a licensed contractor ready to go and are confident that you can do a great job for this house.
But funding is a separate problem entirely. When you go after a traditional bank loan, you will wind up waiting around approximately 1-2 months until eventually the mortgage loan is authorized and your funding is ready to go. So if you're expecting a fast closing, it's important to recognize that this could cost you weeks, causing you to lose out on the house.
With banks bringing in harder loan standards in the last few years, it has become much harder for a self-employed individual to obtain a mortgage loan, particularly if his credit circumstances are not optimal. So must you admit defeat and forego your ambition to venture off into the real estate market? Definitely not, seeing as you also have the Derby Line hard money loan alternative.
A hard money home loan in Derby Line offers what's considered essential to most real estate sales — a very fast closing of just a few weeks and sometimes even less. Besides that, hard money lenders are able to do lending up to 70% LTV of the home value, as established by a credentialed third-party appraiser. With the rates starting out at about 10%, hard money real estate loans may seem, initially, to be higher priced as compared with conventional bank loans. But the time frames of these loans tend to be comparatively short, which means the interest rate is far less important. Short-term loans of a couple of months to a few years are best thought of in terms of cost of capital, much like every other expense associated with a project. After you rehab and unload the property, recovering this expense is the same as recovering the cost of the new kitchen appliances you installed in the place.
Additionally, it's simple to qualify for a hard money mortgage, even in the event your credit rating is not that extraordinary. Instead of focusing strictly on the person's credit score or source of income, Derby Line hard money lenders, who may be a privately owned company or an individual person, say yes to a loan after evaluating the home value, its marketability, where it is located, and the odds of recouping their money in case they have to foreclose the loan. Other factors that impact a person's approval for a hard money real estate loan can include how much money he can put towards a down payment, his former experience being a real estate investor, and selling price of similar, recently sold properties in the area.
So in case you have stumbled on a really great home to flip with a significant prospect of returns, you've also stumbled upon a hard money lender in Derby Line who is prepared to finance your fix and flip projects. Submit the contact form on this page or call us to discuss your property.
A loan specialist will be in touch shortly