Hard Money Loans in Freeport
There is this outstanding possibility for fixing and flipping this wonderful outdated property in a very good part of town and it looks like the one you've been expecting for quite a while. You may have heard that veteran property flippers, such as the husband and wife on HGTV's Flip or Flop, have a remarkable average profit of around $40,000 – $50,000. And without a doubt, they are aided in a big way by their professional know-how, auction expertise and familiarity with hard money loans. However, you are assured that your impressive rehab and renovation abilities will assist you to do a quality job on this property — furthermore, you already have arranged to have one of the most sought after general contractors in the area to take care of this project.
But where do real estate investors find funding? If you apply for a conventional loan via a bank, you will end up waiting roughly 4-8 weeks before the financing is approved and your money is accessible. With all the sellers wanting a fast closing, that doesn't seem like a wise idea to you at all.
Furthermore, in case you have a sub-optimal credit score or don't receive a consistent source of income, it may be more challenging to be eligible for bank financing, with the stricter loan criteria banks have issued lately. So does that leave you with no option, but to abandon your ambition of getting into the fix and flip business? By no means, because you can always use the Freeport hard money loan approach to finance your home flipping project.
If you should put in an application for a hard money home loan in Freeport, you will get what's possibly most vital to real estate offers across the country — a fast closing of around 2 weeks. Further, loan amounts can be made up to 70% loan-to-value of the as-is home value, as determined by a qualified appraiser. A number of people consider hard money real estate loans to be more pricey than ordinary financing, since the interest rates for these loans commonly start out at 10%. But if you appreciate that these are not long-term loans, the rate of interest tends to be misleading. The cost of such short-term loans ought to be viewed on par with any other expense that you would encounter in the course of the project. Once you've sold the home and have made a positive financial gain, you'll be able to reclaim this expense from the house — very much like recovering the money necessary for the brand-new home appliances that you put in.
Moreover, even a person with weak credit will be able to qualify for a hard money mortgage. The borrower's credit score is not the primary determining factor for Freeport hard money lenders — they also look at the home, what is it valued at, its location, and its capacity to bring back their financial commitment if everything does not work out as intended. How much a borrower can put upfront towards the property or home, his real estate experience, and selling price of comparative properties in the same vicinity are various other details that go into analyzing a person's eligibility for a hard money real estate loan.
So in case you have stumbled on a really good fixer-upper with a high potential for returns, you've also found yourself a hard money lender in Freeport who is prepared to provide funding for your fix and flip ventures. Complete the contact form or give us a call to discuss the project you have in mind.
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