Hard Money Loans in Fitchburg
Suppose that you've come across this really great deal for a fix and flip property you found in a terrific location, and you are either an experienced real estate investor or a first-timer who really wants to try his hand at flipping. You've probably heard that professional property flippers, similar to the married couple on HGTV's Flip or Flop, enjoy an impressive average profit margin close to forty to fifty thousand dollars. Naturally, you also recognize that their successes can be attributed to the simple fact that they are industry experts, are well versed in hard money loans, they know the marketplace really well and additionally, they are good at working an auction to buy their properties at a good price. Having said that, you have also been developing your rehab and remodeling skills, have a contractor ready to go and are confident that you're capable of doing a stellar job for this house.
But how do real estate investors obtain capital? A traditional lending institution, for instance a bank, takes at least one to two months to approve the financing and provide the cash. So if you are expecting a fast closing, you need to understand that this will cost you a couple weeks, making you miss out on the home.
With banks establishing tougher loan guidelines in the recent past, it's become harder for a self-employed person to obtain a home loan, particularly if his credit rating is not perfect. So will a shortage of funding keep you from following your aspirations? Certainly not, seeing as you also have the Fitchburg hard money loan alternative.
When you put in an application for a hard money home loan in Fitchburg, you will get what is perhaps most essential to real estate transactions throughout the country — a fast closing of roughly 14 days. Also, hard money lenders are capable of doing funding up to 70% LTV of the property value, as calculated by a qualified third-party appraiser. With interest rates starting at about 10%, hard money real estate loans may seem, at first glance, to be higher priced in comparison with traditional bank lending products. But usually, the interest rate is not as relevant for these loans, because they aren't long-term financing. When it comes to short-term loans of a handful of years or even less, you should think of them the same as you might for every other expenditure for your project. After you remodel and resell the home, recovering this expense is the same as recovering the one for home appliances you placed into the property.
Moreover, even a person with poor credit will be able to be eligible for a hard money mortgage. The person's credit score is not the sole deciding factor for Fitchburg hard money lenders — they also examine the house, what is it valued at, where it is located, and its capacity to return their financial commitment if things should not work out as planned. Adding to that, if the individual have proven experience in equivalent real estate ventures, can place down cash towards the down payment, and the cost of equivalent houses in the neighborhood works to his benefit, he stands a good likelihood of qualifying to get a hard money real estate loan.
Searching for a hard money lender in Fitchburg to cover expenses for your real estate project is not very hard, provided that the opportunity before you is promising and boasts a good potential for returns. Complete the form on this page or get in touch with us via phone and let's talk about your project.
A loan specialist will be in touch shortly