Hard Money Loans in Fairfield
Suppose that you've come across this truly good bargain for a fix and flip property located in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who really wants to try his hand at flipping. You may have heard that competent property flippers, such as the couple on HGTV's Flip or Flop, turn a remarkable average return near forty to fifty thousand dollars. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction talents have had a big role in their successes. That said, you've also been cultivating your rehab and remodeling skills, have got a contractor lined up and are confident that you can do a great job on this property.
But capital is often a different question altogether. For those who get in touch with a regular lender, such as a bank for funding, it can take a minimum of 4-8 weeks for your approval to come through and your funds to be furnished. Considering that the home owners are wanting to find a fast closing, that does not appear like a good idea to you in the slightest.
With banks adding tougher loan standards in the last few years, it is more difficult for a self-employed individual to get a home loan, especially if his credit circumstances are not perfect. So will a shortage of funds stop you from following your ambitions? Definitely not, seeing as you also have the Fairfield hard money loan alternative.
A hard money home loan in Fairfield provides what is probably most sought after by real estate investors — a very fast closing in as little as two weeks. What's more, the LTV value can range up to 70% of the home's valuation, as estimated by a competent appraiser. Some individuals regard hard money real estate loans to be costlier than regular financing, because the lending rates for these loans often start off at 10%. But if you consider these loans are not long-term home loans, the interest rate may be misleading. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, the same as any other financial outlay related to a project. After you remodel and unload the home, recouping this expense is no different than recuperating the cost of the home appliances you put in the property.
Moreover, even individuals with low credit can still qualify for a hard money mortgage. Rather than focusing only on the borrower's credit score or wages, Fairfield hard money lenders, who can be a privately owned company or an individual person, say yes to a loan after evaluating the home value, how easy it will be to market, where it is located, and the possibility of recovering their money in the event of foreclosure. On top of this, if the applicant have proven experience in equivalent real estate projects, can place down cash towards a down payment, and the price of equivalent houses in the vicinity works in his favor, he has got a good shot of being eligible to get a hard money real estate loan.
So if you have found an excellent home to flip with a significant potential for returns, you've also discovered a hard money lender in Fairfield who is prepared to provide financing for your rehab projects. Submit the contact form on this page or give us a call and let's discuss your project.
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