Hard Money Loans in East Haddam
A remarkable bargain on a fix and flip property located in a very good neighborhood shows up out of the blue — seems so good that it's hard to believe. You may have heard that competent house flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average return near forty to fifty thousand dollars. And sure, they are aided in a big way by their professional experience, auction expertise and familiarity with hard money loans. Still, your rehab and renovation knowledge isn't bad either — besides, you've already identified the right licensed contractor to tackle the project.
But how do you obtain the needed capital for home flipping? If you approach a common lending institution, like a bank for financing, it's likely going to take no less than 30-60 days for your approval to come through and your funds to be furnished. Because most home owners would prefer a fast closing, you might need to begin seeking out additional financing options.
With banks establishing tougher loan guidelines in recent times, it's become more difficult for a self-employed individual to find a mortgage loan, particularly if his credit situation is not optimal. So must you stop trying and forego your dream to get into fix and flips? Certainly not, seeing as you always have the East Haddam, Connecticut hard money loan alternative.
A hard money home loan in East Haddam provides you with what's possibly most sought after by real estate investors — a fast closing time of as few as a few weeks. Besides that, hard money lenders frequently agree to funding up to 70% LTV of the property or home's valuation, as identified by a professional third-party evaluator. With interest rates starting off around 10%, hard money real estate loans might appear, at first glance, to be higher priced in comparison with conventional bank financing. But the lengths of these loans are quite shorter, which means the interest rate is much less important. Short-term loans of several months to a handful of years are best thought of as cost of capital, very much like all other costs in connection with a project. When you have resold the property and have made a good profit, you'll be able to reclaim this expense from the home — the same as recouping the money necessary for the brand-new home appliances that you have installed.
Also, it's simple to obtain a hard money mortgage, even when your credit score is not that impressive. The person's credit score is not the lone determining factor for East Haddam hard money lenders — they also evaluate the house, its market valuation, its location, and its capability to earn back their investment if things should not go as planned. How much a person can put down in advance towards the property or home, how much practical experience he has in real estate investing, and selling price of comparative properties in the neighborhood are various other factors that go into analyzing an individual's eligibility for a hard money real estate loan.
So any time you come across an outstanding and profitable investment opportunity, be assured you'll have a hard money lender in East Haddam, in a position to lend you the capital you 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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