Hard Money Loans in Derry
There's this phenomenal opportunity to renovate and flip this nice outdated property in a very good part of town and it looks like the one you've been eagerly waiting on for quite a while. Professional home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of hauling in a profit of forty to fifty grand on average. Naturally, you also understand that their success can be credited to the fact that they are industry experts, are proficient in hard money loans, they understand the marketplace really well and in addition, they are good at working a public auction for getting a reasonable price. With that being said, you've recently been cultivating your rehab and renovation skills, have a contractor ready to go and are confident that you will be able to do a stellar job for this house.
But money is a separate question entirely. When you go after a traditional bank loan, you will end up waiting roughly one to two months up until the time the loan is authorized and the money is readily available. So if you will be looking for a fast closing, you have to understand that this may cost you a few weeks, causing you to lose out on the house.
With banks adding harder loan criteria in recent times, it is now more difficult for a self-employed person to obtain a mortgage loan, especially if his credit rating is not optimal. So does this leave you with no option, but to abandon your aspiration of getting into home flipping? Absolutely not, given that you always have the Derry hard money loan option.
If you should obtain a hard money home loan in Derry, you have access to what is possibly most essential to real estate purchases across the country — a very fast closing of roughly 14 days. In addition, the LTV value can go up to 70% of the property's valuation, as determined by a credentialed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank financing. But if you appreciate that these are not long-term loans, the rate of interest tends to be misleading. Short-term loans of several months to a few years are best understood in terms of cost of capital, the same as all other expenditures associated with a project. When you have resold the property or home and have made a successful return, you're able to reclaim this expense from the property — just like recovering the money spent on the brand-new kitchen appliances that you put in.
Apart from this, hard money mortgages are easy qualifying, even in the event you have got very bad credit. As an alternative for focusing solely on the applicant's credit score or net income, Derry hard money lenders, who could be a privately owned company or an individual, authorize a loan after evaluating the property value, ease of marketability, where it is located, and the likelihood of recovering their money in the event of foreclosure. On top of that, if the borrower can demonstrate prior experience in similar real estate ventures, can place down money towards a down payment, and the cost of similar properties in the vicinity works in his favor, he will have a very good shot of qualifying to obtain a hard money real estate loan.
So if you have stumbled on a really good real estate opportunity with a high potential for returns, you've also discovered a hard money lender in Derry who's willing to provide funding for your fix and flip ventures. Complete the form on this page or get in touch with us via phone and let's talk about the project you have in mind.
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