Hard Money Loans in Exeter
You discovered this outstanding opportunity to rehab and flip this nice outdated property or home in a good location and it seems like the deal you have been eagerly waiting on for a long time. Many people know that skilled professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, are able to earn a typical profit margin of $40,000 to $50,000 when they flip properties. It's fair to say their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have had a big part in their successes. That said, you have recently been developing your rehab and renovation knowledge, have a very good building contractor ready for the project and are certain that you can do a stellar job for this home.
But money is often a different question entirely. Should you apply for a regular loan via a bank, you will have to wait around roughly 1-2 months until eventually the mortgage is authorized and the money is accessible. So if you're expecting a fast closing, it's important for you to understand or know that this may set you back by weeks, making you miss out on the opportunity.
To add to it, banks have been tightening their lending standards as of late, which makes it hard for someone to obtain a traditional loan if their credit circumstances are not flawless or he is lacking a consistent salaried occupation. So must you give up and forego your ambition to get into real estate? Most certainly not, because you always have the Exeter hard money loan alternative.
A hard money home loan in Exeter gives you what's viewed as crucial to most real estate transactions — a very fast closing of just a 2-3 weeks and at times even less. Besides that, hard money lenders can approve loans up to 70% LTV of the property's valuation, as determined by a licensed third-party appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be more pricey than bank lending options. But usually, the lending rate isn't as pertinent for these loans, since they aren't long-term financing. As it pertains to short-term loans of 1 or 2 years or even less, you should look at them identical to any kind of other expense for your project. Right after you remodel and resell the property, recovering this expense is just like recovering the expense for new kitchen appliances you put in the property.
In addition, even an individual with poor credit can easily be eligible for a hard money mortgage. The applicant's credit score is not the single determining factor for Exeter hard money lenders — they also analyze the house, how much it is worth, where it is located, and its capacity to earn back their investment if things do not work out as intended. The total amount that a person can put down beforehand for the home, how much experience he has in real estate investments, and price range of comparable homes in the same area are various other details that go into determining an applicant's qualification for a hard money real estate loan.
If you happen to have stumbled on an excellent fixer-upper with a significant potential for returns, you've also discovered a hard money lender in Exeter who is prepared to provide funding for your flipping project. Submit the contact form on this page or give us a call to talk about the property or properties you have in mind.
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