Hard Money Loans in Ellington
Suppose you've stumbled upon this excellent deal for a fix and flip property you found in a terrific location, and you're either a skilled real estate investor or a newbie who hopes to try out flipping homes. Everyone knows that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, are able to make an average profit margin of forty to fifty thousand dollars when they rehab properties. And sure, they are aided in a major way due to their professional knowledge, auction expertise and familiarity with hard money loans. Nonetheless, your rehab and remodeling knowledge isn't that bad either — besides, you've already located a good licensed contractor to take on this job.
But where can you obtain the necessary financing for home flipping? A typical lender, like for example a bank, takes no less than 1 to 2 months to approve the mortgage and hand over the funds. With all the home owners looking for a fast closing, that does not seem like a good option to you whatsoever.
With banks bringing in harder loan requirements in the past few years, it is now much harder for a self-employed person to get a mortgage loan, especially when his credit circumstances are not flawless. So must you admit defeat and forego your dream to venture off into the real estate market? By no means, considering that you can always go the Ellington, Connecticut hard money loan route to pay for your home renovating project.
A hard money home loan in Ellington provides what is considered vital to many real estate sales — a quick closing of just a couple of weeks and more often than not less. Additionally, loans can be done for up to 70% loan-to-value of the "as is" house value, as deemed by a qualified appraiser. With the loan rates starting out around 10%, hard money real estate loans may appear, at first glance, to be higher priced when compared with conventional bank loans. But if you understand these are not long-term mortgage loans, the rate of interest may be misleading. Short-term loans of several months to a handful of years are best approached in terms of cost of capital, much like all other expenses related to a project. Once you've sold the house and have made a successful gain, you're able to recover this expense from the house — the same as recouping the money necessary for the brand-new appliances for the kitchen that you have installed.
Apart from this, hard money mortgages are not difficult to qualify for, even if you have got a weak credit score. Ellington hard money lenders don't take on a loan exclusively according to the borrower's credit score — rather they also look at the home, where it is located and how much it is worth, and the home's ability to pay back the loan independent of the borrower. On top of this, if the person have proven experience in similar real estate ventures, can place down money towards the down payment, and the price of similar homes in the area works in his favor, he stands a very good likelihood of being eligible for a hard money real estate loan.
So if you have found an excellent real estate opportunity with a huge chance of returns, you have also discovered a hard money lender in Ellington that is happy to finance your rehab projects. Fill out the form or call us and let's discuss your property.
A loan specialist will be in touch shortly