Hard Money Loans in Dover
Suppose that you've run across this really great bargain on a fix and flip property in an ideal location, and you are either an experienced real estate investor or a first-timer who really wants to try out flipping homes. You've heard that veteran property flippers, such as the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit of around $40,000 – $50,000. Naturally, you also know that their successes can be attributed to the simple fact that they're professionals, are proficient in hard money loans, they understand the marketplace really well and in addition, they are good at working an auction for getting a good deal. Nonetheless, your rehab and remodeling knowledge isn't that bad either — in any case, you have already identified an ideal licensed contractor to tackle this job.
But funding can be a different question altogether. Should you meet with a common lender, like a bank for a loan, it can take a minimum of 4-8 weeks for the approval to come through and the money to be dispersed. Due to the fact the sellers are looking for a fast closing, that doesn't appear like a good option to you at all.
On top of this, banks have already been tightening their lending requirements as of late, which makes it challenging for someone to receive a regular loan if their credit score is not perfect or he does not possess a consistent salaried profession. So will a shortage of funds keep you from pursuing your ambitions? Not at all, especially when Dover, Massachusetts hard money loans enable you to accomplish many amazing things in real estate.
When you put in an application for a hard money home loan in Dover, you're going to get what is probably most important to real estate offers across the country — a quick closing of roughly 14 days. Further, financing is made up to 70% loan-to-value of the as-is property's valuation, as calculated by a qualified appraiser. A number of people believe hard money real estate loans to be more expensive than ordinary loans, since the interest rates of such loans often start off at 10%. But when you appreciate that these are not long-term home loans, the interest rate may be misleading. Short-term loans of a couple of months to a handful of years are best looked at as cost of capital, much like any other financial outlay related to a project. After you fix up and unload the home, recovering this expense is the same as recuperating the one for new kitchen appliances you placed into the property.
In addition, even an individual with poor credit can easily qualify for a hard money mortgage. The borrower's credit score will not be the single deciding factor for Dover hard money lenders — they also examine the property, its market valuation, its location, and its capability to bring back their investment if things should not go as intended. The amount that an applicant can put down in advance for the home, his real estate experience, and price range of comparable properties in the same area are various other details that go into ascertaining an applicant's eligibility for a hard money real estate loan.
So if you have stumbled on a really good home to flip with a high prospect of returns, you have also stumbled upon a hard money lender in Dover who's happy to provide funding for your rehab ventures. Fill out the contact form on this page or give us a call and let's talk about your property or properties.
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