Hard Money Loans in East Hampton
A fantastic deal on a fix and flip opportunity located in a good neighborhood suddenly turns up — seems so good that it's difficult to believe. Many people know that capable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, are able to generate a typical profit of forty to fifty thousand dollars when they flip properties. Undoubtedly, you also know that their success are due to the simple fact that they are industry experts, are knowledgeable in hard money loans, they understand the marketplace really well and in addition, they know how to work a public auction to buy their houses at a reasonable deal. That said, you have recently been developing your rehab and renovation skills, have a very good licensed contractor arranged and are confident that you can do a great job on this home.
But where do you find the needed funding for home flipping? If you get in touch with a common lender, like a bank for funding, it's likely going to take, at a minimum, thirty to sixty days for your acceptance to come through and the money to be dispersed. Thus if you are expecting a fast closing, you need to realize that this will set you back by a couple of weeks, making you miss out on the sale.
As well as this, in case you have a less-than-perfect credit situation or don't receive a consistent income source, it is usually more difficult for you to be eligible for a bank financing, considering the more stringent loan criteria banks have introduced as of late. So must you admit defeat and abandon your dream to venture off into the real estate market? Never, considering that you could always go the East Hampton, Connecticut hard money loan route to fund your flipping project.
A hard money home loan in East Hampton boasts what's possibly most desired by real estate investors — a very fast closing time of as little as 2 weeks. Additionally, loans are made up to 70% loan-to-value of the as-is property value, as determined by a professional appraiser. Some individuals regard hard money real estate loans to be more expensive than customary financing, considering lending rates of such loans often start at 10%. But when you consider these loans are not long-term home loans, the interest rate tends to be misleading. When it comes to short-term loans of several years or less, you should look at them the same as you might for any other expense for your project. After you fix up and sell off the house, recouping this expense is the same as recouping the one for new kitchen appliances you put in the place.
Moreover, even an individual with bad credit can easily be eligible for a hard money mortgage. Rather than focusing entirely on the borrower's credit score or wages, East Hampton hard money lenders, who could be a private company or an individual, approve a loan after evaluating the property value, its marketability, where it is located, and the probability of recovering their capital in case they have to foreclose the loan. How much money an applicant can put down beforehand towards the house, how much experience he has in real estate investments, and price range of equivalent homes in the vicinity are various other details that go into determining a borrower's suitability for a hard money real estate loan.
So if you have found a wonderful fixer-upper with a significant chance of returns, you have also discovered a hard money lender in East Hampton who is ready to finance your rehab ventures. Submit the form on this page or get in touch with us via phone to talk about the project you have in mind.
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