Hard Money Loans in Freetown
You discovered this phenomenal opportunity to rehab and flip this nice old house in a good location and it seems a lot like the one you have been eagerly waiting on for a long time. You've heard that professional home flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average return of around $40,000 – $50,000. Undoubtedly, you also know that their great results are due to the simple fact that they are professionals, are proficient in hard money loans, they know the marketplace quite well and furthermore, they are good at working a public auction to buy their houses at a reasonable price. Nonetheless, your rehab and renovation skills aren't bad either — in any case, you've already found a suitable licensed contractor to take on this home.
But financing is a separate issue entirely. A traditional lender, for instance a bank, takes at the very least one to two months to consent to the loan and deliver the money. Given that sellers would rather have a fast closing, you may have to begin searching for additional funding alternatives.
Moreover, if you have an unfavorable credit situation or don't receive a conventional source of income, it is usually harder for you to be eligible for a bank loan, seeing the more stringent loan requirements banks have put in place as of late. So does this leave you with no option, but to abandon your dream to venture into home renovating? By no means, especially when Freetown, Massachusetts hard money loans enable you to realize great things in the real estate world.
Should you apply for a hard money home loan in Freetown, you'll get what's probably most essential to real estate transactions across the country — a quick closing of approximately 2 weeks. What's more, the LTV value can go up to 70% of the property value, as estimated by a credentialed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, appear to be costlier than bank lending options. But the lengths of these loans are relatively shorter, which makes the interest rate less important. Short-term loans of a couple of months to a few years are best approached as cost of capital, similar to every other expenditure in connection with a project. And when you have sold the home, recuperating this expense is identical to recovering the expense for the kitchen and bath upgrades you performed.
Additionally, it is simple to be eligible for a hard money mortgage, regardless of whether your credit situation is not that great. The customer's credit score is not the single deciding factor for Freetown hard money lenders — they also evaluate the house, how much it is worth, where it is located, and its ability to bring back their investment if things do not go as intended. On top of this, if the borrower can demonstrate prior experience in equivalent real estate endeavors, can place down cash for a down payment, and the value of comparative houses in the area works to his benefit, he has an excellent shot of qualifying for a hard money real estate loan.
Searching for a hard money lender in Freetown to help with expenses for your flipping business is not very hard, assuming that the opportunity that lies before you is promising and has a good prospect for returns. Enter your info into the form or get in touch with us via phone and let's talk about your property.
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