Hard Money Loans in Gardner
An incredible buy on a fix and flip property located in a very good area of the city shows up out of the blue — sounds too good to be true. Everyone knows that expert professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, can readily make an average profit of forty to fifty thousand dollars in their rehab business. Without question, their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction skills have been large factors to their successes. Nonetheless, your rehab and remodeling knowledge isn't bad either — in any case, you have already found a good general contractor to handle this home.
But funding is usually a separate problem entirely. A traditional lending institution, like for example a bank, takes no less than one to two months to consent to the loan and deliver the money. So if you are looking for a fast closing, you must recognize that this may cost you a couple of weeks, causing you to miss out on the sale.
To add to it, banks have been tightening up their lending criteria as of late, rendering it more difficult for a person to receive a conventional loan if their credit rating is not perfect or he does not possess a regular salaried profession. So does that mean you are without an option, but to give up your ambition of venturing into rehabbing? Definitely not, because you also have the Gardner hard money loan alternative.
A hard money home loan in Gardner offers what is considered imperative to many real estate transactions — a fast closing of just a few weeks and at times even less. In addition, the LTV value can go up to 70% of the property's valuation, as determined by a certified appraiser. With lending rates starting near 10%, hard money real estate loans may seem, at first glance, to be more costly when compared with conventional bank lending products. But the lengths of these loans are rather short, which makes the interest rate far less significant. When it comes to short-term loans of one or two years or even less, you should think of them similar to any other expenditure for the project. When you have turned the home and have made a successful return, you'll be able to get back this expense from the house — similar to recovering the money spent on the brand-new appliances for the kitchen that you put in.
In addition, even individuals with weak credit can easily be eligible for a hard money mortgage. As an alternative for focusing exclusively on the applicant's credit score or source of income, Gardner hard money lenders, who could be a privately owned company or an individual person, approve a loan as a result of assessing the property value, how easy it will be to market, where it is located, and the likelihood of recuperating their capital should they have to foreclose the loan. On top of this, if the individual have proven experience in comparable real estate ventures, can place down money towards a down payment, and the cost of comparative properties in the neighborhood works to his benefit, he has an excellent chance of qualifying to get a hard money real estate loan.
So should you run into an outstanding and profitable flipping opportunity, feel comfortable knowing you'll have a hard money lender in Gardner, ready to lend you the money that you need. Fill out the contact form or call us and let's discuss your property.
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