Hard Money Loans in Farmington
Imagine you've run across this excellent bargain on a fix and flip property in an ideal location, and you are either a skilled real estate investor or a newbie who wants to try out flipping houses. Expert house flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of earning a profit of $40-$50k on average. And without a doubt, they are helped in a big way by their professional knowledge, auction skills and knowledge of hard money loans. That said, you've also been developing your rehab and renovation skills, have got a general contractor lined up and are positive that you will be able to do a great job on this house.
But how exactly can real estate investors find funding? A standard lending institution, for instance a bank, takes at the very least 1 to 2 months to approve the financing and deliver the cash. Since most sellers prefer a fast closing, you might want to start looking for other funding alternatives.
To add to it, banks have been tightening their lending standards in recent years, which makes it tough for a person to receive a traditional loan if their credit score is not perfect or he does not have a regular salaried occupation. So should you admit defeat and abandon your dream to venture off into fix and flips? Never, because you can always use the Farmington, Connecticut hard money loan approach to finance your home flipping project.
A hard money home loan in Farmington provides what's probably most essential to real estate investors — a fast closing in as little as 2 weeks. Plus, the LTV value can go up to 70% of the home value, as determined by a competent appraiser. Some people consider hard money real estate loans to be higher priced than standard financing, considering interest rates for these loans ordinarily start at 10%. But usually, the interest rate isn't as relevant for these loans, because they aren't long-term loans. The price of such short-term loans should be considered much like every other expense that you would need to meet for the project. Once you have resold the property and have made a successful return, you can reclaim this expense from the home — the same as recovering the cost of brand-new kitchen appliances that you have put in.
Furthermore, even a person with weak credit will be able to be eligible for a hard money mortgage. Rather than focusing exclusively on the borrower's credit score or wages, Farmington hard money lenders, who may be a privately owned company or an individual person, authorize a loan after examining the home value, its salability, where it is located, and the likelihood of getting back their capital in the event of foreclosure. Several other criteria that have an impact on an individual's approval for a hard money real estate loan include how much he is in a position to put into a down payment, his previous experience being a real estate investor, and price range of comparative, fairly recently sold homes in the vicinity.
So should you come across a really good and worthwhile investment opportunity, feel comfortable knowing you'll have a hard money lender in Farmington, prepared to loan you the funds you need. Submit the form on this page or get in touch with us via phone and let's talk about the property or properties you have in mind.
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