Hard Money Loans in Georgetown
A remarkable buy on a fix and flip opportunity in a very good subdivision shows up out of the blue — seems too good to be true. A majority of people know that capable professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, can turn a typical profit margin of forty to fifty thousand dollars when they rehab properties. And yes, they are aided in a major way via their professional experience, auction skills and understanding of hard money loans. Still, your rehab and renovation skills aren't bad either — besides, you have already identified an ideal general contractor to take on this project.
But financing is a separate issue entirely. For those who get in touch with a standard lending institution, much like a bank for a loan, it's likely going to take a minimum of 4-8 weeks for the acceptance to be completed and the funds to be given out. Considering that all the home owners are looking for a fast closing, that does not appear like a wise idea to you at all.
With banks adding tougher loan standards in the past several years, it's become much harder for a self-employed individual to get a mortgage loan, especially when his credit circumstances are not perfect. So do you have to admit defeat and abandon your ambition to get into real estate? Definitely not, seeing as you also have the Georgetown, Massachusetts hard money loan option.
A hard money home loan in Georgetown offers you what is regarded as essential to most real estate sales — a fast closing of only a 2-3 weeks and at many times even less. Furthermore, hard money lenders can do lending up to 70% LTV of the property's valuation, as assessed by a certified third-party appraiser. With loan rates starting out around 10%, hard money real estate loans may seem, at first, to be higher priced in comparison with traditional bank loans. But the term lengths for these loans tend to be quite shorter, making the rate less important. The price tag on such short-term loans should be evaluated on par with every other expense that you would have to meet for the project. When you have sold the property and have made a positive return, you'll be able to reclaim this expense from the property — much like recouping the cost of brand-new appliances for the kitchen that you have put in.
In addition, even a person with bad credit can easily be eligible for a hard money mortgage. Rather than focusing solely on the borrower's credit score or source of income, Georgetown hard money lenders, who could be a private company or an individual, say yes to a loan as a result of analyzing the property value, its marketability, where it is located, and the odds of recovering their money in case they have to foreclose the loan. How much of their own money a person can put down in advance for the home, his real estate experience, and selling price of comparative homes in the neighborhood are other details that go into analyzing a person's qualification for a hard money real estate loan.
So in the event you run into an outstanding and profitable flipping opportunity, feel comfortable knowing you'll have a hard money lender in Georgetown, prepared to lend you the cash that you need. Fill out the contact form or call us to talk about the property or properties you have in mind.
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