Hard Money Loans in Durham
Suppose you've encountered this excellent bargain for a fix and flip property located in an ideal location, and you're either a seasoned real estate investor or a first-timer who really wants to try his hand at flipping. Most folks know that skilled professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, are able to make a typical profit margin of $40,000 to $50,000 on their flips. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction skills have played a significant role in their successes. Nonetheless, your rehab and remodeling knowledge isn't bad either — besides, you have already located the right licensed contractor to take on the project.
But how do real estate investors get money? A conventional lender, like for example a bank, takes no less than one to two months to authorize the financing and hand over the monies. So if you are anticipating a fast closing, it's important for you to be aware that this could cost you a few weeks, causing you to lose out on the opportunity.
Furthermore, for those who have a sub-optimal credit rating or don't have a conventional income, it usually is harder to obtain a bank loan, with the more stringent loan guidelines banks have put in place lately. So does that mean you have no option, but to abandon your aspiration of venturing into flipping? By no means, because you can always use the Durham, Connecticut hard money loan approach to pay for your home renovating project.
A hard money home loan in Durham gives you what's viewed as crucial to many real estate sales — a very fast closing of just a few weeks and more often than not less. Aside from that, financing can be made up to 70% loan-to-value of the "as is" valuation, as established by a licensed appraiser. Some people consider hard money real estate loans to be costlier than regular financing, because the interest rates for such loans commonly start out at 10%. But the time frames of these loans are quite shorter, making the interest rate far less significant. The price of such short-term loans should be considered much like any other cost that you would encounter in the course of the project. Right after you fix up and sell the house, recouping this expense is no different than recuperating the one for home appliances you installed in the property.
Apart from this, hard money mortgages are not difficult to qualify for, regardless if you posses a weak credit score. Durham hard money lenders don't take on a loan exclusively based on the borrower's credit score — rather they also analyze the property, its value and location, and the home's ability to pay back the financing independent of the applicant. Other criteria that affect a customer's eligibility for a hard money real estate loan include how much money he can put into a down payment, his previous experience as a real estate investor, and price range of comparative, fairly recently sold residences nearby.
So should you come across a good and profitable investment opportunity, feel comfortable knowing you'll have a hard money lender in Durham, prepared to lend you the capital you may need. Fill out the form on this page or give us a call to talk about the property or properties you have in mind.
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