Hard Money Loans in Fairhaven
An incredible bargain on a fix and flip opportunity in a very good area of the city shows up out of the blue — sounds too good to be true. You may have heard that competent home flippers, similar to the married couple on HGTV's Flip or Flop, have an impressive average profit margin close to forty to fifty thousand dollars. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have played a big part in their success. Nonetheless, your rehab and renovation knowledge isn't bad either — besides, you've already found an ideal general contractor to tackle the project.
But money is often a different issue entirely. A traditional lending institution, like for example a bank, takes at the very least 1-2 months to approve the financing and hand over the money. Since the majority of home owners would rather have a fast closing, it may be advisable to begin seeking out some other financing alternatives.
With banks introducing tougher loan criteria in the past several years, it is now harder for a self-employed individual to obtain a home loan, especially when his credit rating is not flawless. So does that mean you are without an option, but to give up your dream to venture into home flipping? Certainly not, because you also have the Fairhaven, Massachusetts hard money loan option.
A hard money home loan in Fairhaven boasts what is perhaps most crucial to real estate investors — a fast closing in as few as fourteen days. Furthermore, hard money lenders will often consent to loans up to 70% LTV of the property or home value, as established by a professional third-party appraiser. A number of people regard hard money real estate loans to be costlier than ordinary loans, because the lending rates for these loans normally start out at 10%. But usually, the rate of interest is not as relevant for these loans, since they will never be long-term loans. The price tag on such short-term loans should be viewed much like every other financial outlay that you will have to meet pertaining to the project. After you fix up and sell the home, recouping this expense is the same as recouping the cost of the home appliances you installed in the house.
Moreover, even an individual with bad credit can easily qualify for a hard money mortgage. The applicant's credit score will not be the primary deciding factor for Fairhaven hard money lenders — they also consider the piece of real estate, what is it valued at, its location, and its potential to earn back their investment if everything does not work out as intended. How much money an individual can put upfront for the property, how much experience he has in real estate investing, and selling price of comparable properties in the vicinity are other factors that go into analyzing a borrower's suitability for a hard money real estate loan.
Searching for a hard money lender in Fairhaven to fund your flipping business is not hard, provided that the opportunity that lies before you is promising and offers a good potential for returns. Fill out the contact form or call us and let's talk about the property you have in mind.
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