Hard Money Loans in Falmouth
Imagine you've run across this really great deal for a fix and flip property in a terrific location, and you are either an experienced real estate investor or a first-timer who wants to try his hand at flipping. You may have heard that professional home flippers, similar to the married couple on HGTV's Flip or Flop, have an impressive average profit margin near forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction skills have been major factors to their success. That said, you have likewise been developing your rehab and remodeling skills, have a very good contractor ready to go and are confident that you're capable of doing an impressive job for this home.
But where precisely do real estate investors obtain money? Should you approach a standard lender, like a bank for funding, it likely will take a minimum of 4-8 weeks for your approval to be completed and your money to be dispersed. With all the sellers wanting a fast closing, that does not appear to be a wise idea to you in the slightest.
To add to it, banks have been tightening their lending standards in recent times, which makes it tough for people to get a traditional home loan if their credit rating is not perfect or he is lacking a consistent salaried profession. So will inadequate funds keep you from following your ambitions? Never, because you can always go the Falmouth hard money loan route to fund your home flipping project.
A hard money home loan in Falmouth promises what is perhaps most important to real estate investors — a fast closing time period of as little as 2 weeks. And additionally, financing can be done for up to 70% loan-to-value of the "as is" house's valuation, as calculated by a professional appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as costlier than bank loans. But in reality, the rate of interest is not as relevant for these loans, simply because they will never be long-term loans. When it comes to short-term loans of a few years or even less, you should think of them just like you would other expenditures for the project. When you have resold the property and have made a positive profit, you can reclaim this expense from the home — the same as recovering the money spent on the brand-new kitchen appliances that you installed.
Apart from this, hard money mortgages are not hard to qualify for, even when you have poor credit. The applicant's credit score is not the single determining factor for Falmouth hard money lenders — in addition, they evaluate the house, its market value, where it is located, and its capability to return their investment if things do not go as intended. On top of this, if the borrower can demonstrate prior experience in similar real estate endeavors, can put down cash towards a down payment, and the price of equivalent houses in the area works to his benefit, he has an excellent likelihood of qualifying to get a hard money real estate loan.
If you happen to have stumbled upon a wonderful fixer-upper with a significant probability of returns, you've also found yourself a hard money lender in Falmouth who's willing to provide funding for your rehab project. Complete the contact form on this page or get in touch with us via phone to talk about the property you have in mind.
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