Hard Money Loans in East Lyme
Suppose you've stumbled upon this really great bargain for a fix and flip property in an ideal location, and you happen to be either an experienced real estate investor or a newbie who is looking to try out flipping houses. Expert property flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to haul in a gain of forty to fifty grand as an average on multiple occasions. It goes without saying their rehabbing experience, understanding of hard money loans, expertise in their market, and auction talents have played an important part in their successes. Still, your rehab and renovation knowledge isn't that bad either — besides, you've already located a good licensed contractor to start this job.
But funding is often a different issue entirely. If you meet with a customary lending institution, such as a bank for funding, it is very likely going to take, at a minimum, thirty to sixty days for your approval to be completed and your funds to be distributed. Since most sellers give preference to a fast closing, you might want to start searching for other financing alternatives.
What's more, if you have an unfavorable credit rating or don't have a consistent source of income, it is normally tougher for you to obtain bank financing, considering the more stringent loan guidelines banks have issued in recent times. So must you stop trying and abandon your dream to embark into fix and flips? Certainly not, due to the fact you could always go the East Lyme, Connecticut hard money loan route to pay for your home flipping project.
A hard money home loan in East Lyme provides what's regarded as imperative to many real estate deals — a very fast closing of just a couple of weeks and sometimes less. And additionally, loan amounts can be done for up to 70% loan-to-value of the as-is house's valuation, as determined by a qualified appraiser. With the rates starting near 10%, hard money real estate loans may seem, at first, to be more expensive when compared with traditional bank loans. But in reality, the lending rate is not as useful a measure for these loans, because they are not long-term loans. Short-term loans of a couple months to a few years are best approached in terms of cost of capital, very much like any other financial outlay involved with a project. Right after you fix up and resell the property, recouping this expense is the same as recovering the expense for stainless steel appliances you put in the property.
In addition, even a person with bad credit will be able to qualify for a hard money mortgage. Instead of focusing exclusively on the applicant's credit score or source of income, East Lyme hard money lenders, who could be a private company or an individual person, authorize a loan after evaluating the home value, ease of marketability, its location, and the possibility of getting back their capital in the event of foreclosure. How much a person can put down in advance towards the property, his real estate experience, and selling price of equivalent homes in the same vicinity are other details that go into determining a borrower's eligibility for a hard money real estate loan.
Finding a hard money lender in East Lyme to fund your real estate project is not very challenging, provided that the opportunity that lies before you is promising and offers a strong prospect for returns. Complete the contact form on this page or get in touch with us via phone to talk about your property.
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