Hard Money Loans in Essex
There is this amazing opportunity to renovate and flip this nice out of date property in a very good area and it looks like the deal you've been wanting for a long time. Professional house flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a gain of $40-$50k on the majority of projects. Of course, you also are aware that their successes can be attributed to the fact that they're professionals, are proficient in hard money loans, they know market trends really well and additionally, they are good at working a public auction to purchase their properties at an appropriate price. Still, your rehab and remodeling knowledge isn't bad either — besides, you have already located a good licensed contractor to tackle the home.
But how can real estate investors obtain capital? A traditional lender, like for example a bank, takes at least 1 to 2 months to approve the mortgage and provide the funds. Given that home owners wish to have a fast closing, it may be best to start searching for other funding alternatives.
Furthermore, if you have a sub-optimal credit situation or don't receive a regular source of income, it is normally tougher to qualify for bank financing, seeing the stricter loan criteria banks have introduced of late. So will inadequate financing keep you from following your dream? Definitely not, because you always have the Essex, Connecticut hard money loan option.
If you obtain a hard money home loan in Essex, you're going to get what's perhaps most important to real estate offers throughout the country — a quick closing of about two weeks. Further, loans are made up to 70% loan-to-value of the "as is" home's valuation, as calculated by a licensed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be higher priced than bank lending products. But once you understand these loans are not long-term loans, the rate can be misleading. Short-term loans of a couple months to a handful of years are best looked at in terms of cost of capital, very much like any other financial outlay in connection with a project. Once you've sold the house and have made a positive gain, you can recover this expense from the home — just like recuperating the cost of brand-new home appliances that you have installed.
In addition, even a person with bad credit can easily be eligible for a hard money mortgage. The person's credit score will not be the sole determining factor for Essex hard money lenders — in addition, they analyze the home, what is it valued at, where it is located, and its capacity to return their financial commitment if things do not go as intended. Several other criteria that impact a borrower's acceptance for a hard money real estate loan include the amount he can put towards a down payment, his former experience being a real estate investor, and price of comparative, fairly recently sold residences nearby.
If you happen to have stumbled on an excellent real estate opportunity with a high chance of returns, you have also discovered a hard money lender in Essex who is prepared to finance your fix and flip venture. Enter your info into the contact form on this page or get in touch with us via phone to discuss your property or properties.
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