Hard Money Loans in East Providence
An incredible bargain on a fix and flip opportunity in a good area of the city shows up out of the blue — seems too good to be true. Professional residential home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are able to generate a profit of forty to fifty grand on average. And indeed, they are helped in a major way by their professional experience, auction abilities and understanding of hard money loans. Nevertheless, you are assured that your superb rehab and remodeling abilities can help you do an outstanding job on the house — additionally, you already have lined up one of the best building contractors in town to work on the job.
But money can be a different problem altogether. When you meet with a standard lending institution, like a bank for funding, it can take a minimum of 30-60 days for the approval to come through and the money to be furnished. Since the majority of sellers would prefer a fast closing, you may want to start searching for additional funding alternatives.
With banks adding harder loan guidelines in the last few years, it is much harder for a self-employed person to obtain a home loan, especially when his credit rating is not optimal. So do you have to stop trying and abandon your desire to embark into the real estate market? Not at all, particularly while East Providence hard money loans can help you accomplish great things in the real estate market.
A hard money home loan in East Providence gives you what is perhaps most essential to real estate investors — a very fast closing time period of as few as 14 days. What's more, the LTV value can go up to 70% of the home's valuation, as evaluated by a competent appraiser. Some people consider hard money real estate loans to be costlier than standard financing, since the lending rates for such loans commonly start out at 10%. But if you appreciate that these are not long-term home loans, the rate of interest may be misleading. The cost of such short-term loans should be viewed much like every other financial outlay that you might encounter in the course of the project. And as soon as you've finally flipped the home, recovering this expense is the exact same as recovering the expense for the bathroom upgrades you did.
In addition, even someone with weak credit will be able to qualify for a hard money mortgage. Instead of focusing only on the person's credit score or wages, East Providence hard money lenders, who could be a private company or an individual, authorize a loan after evaluating the property value, its salability, where it is located, and the probability of getting back their money if they have to foreclose the loan. Other criteria that affect a person's approval for a hard money real estate loan can include the amount he is able to put into a down payment, his prior experience as a real estate investor, and price of comparative, fairly recently sold residences nearby.
So any time you run into a very good and lucrative flipping opportunity, be assured you'll have a hard money lender in East Providence, able to loan you the capital you will need. Submit the contact form on this page or get in touch with us via phone and let's discuss the project you have in mind.
A loan specialist will be in touch shortly