Hard Money Loans in Framingham
Imagine you've come across this excellent deal on a fix and flip property you found in a great location, and you're either an experienced real estate investor or a newbie who really wants to try his hand at flipping. You may have heard that veteran house flippers, such as the husband and wife on HGTV's Flip or Flop, have an impressive average profit of around $40,000 – $50,000. Undoubtedly, you also realize that their success are attributed to the fact that they are experts, are knowledgeable in hard money loans, they know the market quite well and in addition, they are good at working a public auction for getting an appropriate price. However, you are assured that your first class rehab and remodeling talents will assist you to do a quality job on the home — additionally, you already have arranged to have one of the most sought after building contractors in town to handle the project.
But where precisely can real estate investors find financing? A standard lending institution, for instance a bank, takes at the very least 1 to 2 months to authorize the mortgage and hand over the cash. Because most home owners would prefer a fast closing, it may be best to start seeking out some other funding options.
With banks adding tougher loan requirements in the past few years, it's become more challenging for a self-employed individual to obtain a mortgage loan, particularly if his credit situation is not perfect. So will a shortage of funding keep you from following your ambitions? Certainly not, because you also have the Framingham hard money loan alternative.
If you decide to opt for a hard money home loan in Framingham, you will get what's probably most important to real estate negotiations throughout the country — a fast closing of about 2 weeks. In addition, the LTV value can reach up to 70% of the home value, as evaluated by a credentialed appraiser. Some individuals consider hard money real estate loans to be more pricey than standard loans, because the lending rates of such loans usually start at 10%. But in reality, the rate of interest isn't as useful a measure for these loans, simply because they will never be long-term loans. When it comes to short-term loans of several years or even less, you should look at them much like you would other expenses for your project. After you renovate and sell off the property, recouping this expense is no different than recouping the expense for stainless steel appliances you installed in the home.
Also, it isn't difficult to obtain a hard money mortgage, even if your credit situation is not that impressive. Framingham hard money lenders don't authorize a loan exclusively based on the person's credit score — instead they also evaluate the property or home, its location and value, and the home's capability to pay back the financing on its own. Adding to that, if the borrower can demonstrate past experience in comparable real estate projects, can put down money for the down payment, and the cost of comparable houses in the vicinity works to his benefit, he will have an excellent chance of being approved to obtain a hard money real estate loan.
Finding a hard money lender in Framingham to fund your fix and flip endeavor is not very hard, provided that the opportunity before you is promising and possesses the right prospect for returns. Fill out the contact form on this page or get in touch with us via phone and let's discuss your property or properties.
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