Hard Money Loans in East Longmeadow
Imagine you've encountered this really great bargain for a fix and flip property you found in a terrific location, and you are either an experienced real estate investor or a newbie who is looking to try his hand at flipping. Everyone knows that expert professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, can earn an average profit margin of forty to fifty thousand dollars on their flips. And indeed, they are aided in a big way by their professional know-how, auction abilities and understanding of hard money loans. Still, your rehab and remodeling skills aren't that bad either — aside from that, you've already found the right licensed contractor to start this project.
But capital is usually a separate problem entirely. A standard lender, for instance a bank, takes a minimum of one to two months to approve the mortgage and hand over the monies. Since most home owners would rather have a fast closing, it may be advisable to start searching for other funding alternatives.
What's more, should you have an unfavorable credit situation or do not have a consistent income source, it can be more challenging to qualify for a bank loan, with the tougher loan requirements banks have introduced in recent times. So does that leave you with no other option, but to drop your aspiration to venture into flipping? Certainly not, because you also have the East Longmeadow, Massachusetts hard money loan option.
When you opt for a hard money home loan in East Longmeadow, you will get what is probably most essential to real estate offers across the country — a fast closing of about 2 weeks. Furthermore, hard money lenders will often consent to lending up to 70% LTV of the property or home value, as calculated by a qualified third-party evaluation. Some people consider hard money real estate loans to be costlier than standard loans, because the lending rates of such loans normally start at 10%. But in reality, the interest rate is not as relevant for these loans, since they are not long-term financing. Short-term loans of a couple of months to a handful of years are best approached in terms of cost of capital, much like all other costs in connection with a project. After you remodel and sell the property, recuperating this expense is no different than recovering the money you spent for new kitchen appliances you placed into the property.
In addition, even someone with poor credit will be able to be eligible for a hard money mortgage. East Longmeadow hard money lenders do not take on a loan strictly based on the borrower's credit score — instead they also look at the home, where it is located and how much it is worth, and the home's capacity to pay back the loan independent of the person. Additional variables that influence a borrower's acceptance for a hard money real estate loan can include the amount he is in a position to put into a down payment, his prior experience being a real estate investor, and price range of similar, recently sold properties in the area.
Finding a hard money lender in East Longmeadow to cover expenses for your real estate project is not very challenging, as long as the opportunity before you is promising and boasts a good prospect for returns. Enter your info into the form on this page or give us a call and let's discuss the property you have in mind.
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