Hard Money Loans in East Granby
There is this outstanding possibility for rehabbing and flipping this nice outdated home in a fantastic area and it seems like the one you have been expecting for a long time. Professional property flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a gain of $40-$50k as an average on multiple occasions. And yes, they are aided in a big way due to their professional knowledge, auction skills and familiarity with hard money loans. Having said that, you've recently been brushing up your rehab and remodeling skills, have a very good building contractor ready for the project and are confident that you can do an impressive job for this property.
But financing is usually a separate issue entirely. Should you get in touch with a regular lending institution, like a bank for funding, it more than likely will take at least 30-60 days for your approval to come through and the funds to be distributed. Due to the fact the sellers are looking for a fast closing, that does not appear to be a great idea to you in the slightest.
With banks bringing in more challenging loan requirements in the last few years, it is now more difficult for a self-employed individual to obtain a mortgage loan, especially when his credit score is not flawless. So do you have to admit defeat and abandon your dream to get into the real estate market? Certainly not, given that you also have the East Granby, Connecticut hard money loan option.
A hard money home loan in East Granby offers what is viewed as essential to many real estate sales — a very fast closing of just a few weeks and sometimes less. In addition, the LTV value can reach up to 70% of the place's valuation, as evaluated by a competent appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank financing. But usually, the lending rate is not as useful a measure for these loans, because they will never be long-term loans. When it comes to short-term loans of a few years or less, you should think about them the same as you would for every other expense for the project. And as soon as you've finally flipped the house, recovering this expense is identical to recuperating the expense for the bathroom or other upgrades you performed.
Apart from this, hard money mortgages are easy qualifying, even when you have bad credit. East Granby hard money lenders don't authorize a loan exclusively based on the borrower's credit score — rather they additionally analyze the property, its location and value, and the home's capacity to pay back the financing independent of the borrower. Other factors that affect an applicant's approval for a hard money real estate loan include how much money he can put towards a down payment, his past experience being a real estate investor, and price range of comparable, recently sold residences in the vicinity.
So any time you come across a good and worthwhile investment opportunity, relax knowing you will have a hard money lender in East Granby, in a position to lend you the funds you'll need. Fill out the contact form on this page or call us to talk about the project you have in mind.
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