Hard Money Loans in Enfield
Suppose that you've run into this really great deal on a fix and flip property in a great neighborhood, and you are either a seasoned real estate investor or a first-timer who wants to try out flipping houses. You've probably heard that competent house flippers, like the couple on HGTV's Flip or Flop, turn an impressive average profit margin of around $40,000 – $50,000. And indeed, they are aided in a big way via their professional know-how, auction skills and knowledge of hard money loans. Nevertheless, you are assured that your first class rehab and remodeling skills will help you do a great job on this property — additionally, you have already lined up one of the best contractors in the area to take care of the project.
But where do you find the necessary capital for flipping? Should you apply for a normal loan via a bank, you will wind up waiting somewhere around 1-2 months until the mortgage is authorized and your money is readily available. Thus if you are anticipating a fast closing, you need to realize that this will cost you weeks, making you lose out on the sale.
With banks adding tougher loan requirements in recent years, it is tougher for a self-employed person to get a mortgage loan, especially if his credit situation is not flawless. So does that leave you with no option, but to abandon your ambition of getting into flipping? Definitely not, given that you always have the Enfield hard money loan alternative.
If you apply for a hard money home loan in Enfield, you will get what's possibly most important to real estate negotiations throughout the country — a quick closing of around fourteen days. Also, hard money lenders frequently agree to lending up to 70% LTV of the home's valuation, as determined by a professional third-party evaluation. Some individuals regard hard money real estate loans to be higher priced than customary financing, because the lending rates for these loans normally start off at 10%. But in reality, the interest rate isn't as useful a measure for these loans, simply because they aren't long-term loans. Short-term loans of a couple of months to a few years are best looked at in terms of cost of capital, much like every other expense in connection with a project. Right after you rehab and sell the house, recuperating this expense is no different than recuperating the expense for home appliances you placed into the property.
Besides, hard money mortgages are not difficult to qualify for, even when you have got less-than-perfect credit. The person's credit score will not be the single determining factor for Enfield hard money lenders — they also consider the home, how much it is worth, its location, and its capability to return their investment if everything does not go as intended. Several other factors that affect a person's eligibility for a hard money real estate loan include what amount of money he is able to put towards a down payment, his past experience being a real estate investor, and price range of similar, fairly recently sold homes in the area.
So in case you have stumbled on an excellent home to flip with a huge chance of returns, you've also discovered a hard money lender in Enfield that is ready to finance your rehab venture. Fill out the contact form on this page or give us a call to talk about your property.
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