Hard Money Loans in Gloucester
Imagine you've run into this truly good bargain on a fix and flip property you found in a great neighborhood, and you are either a seasoned real estate investor or a first-timer who wants to try out flipping houses. A majority of people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, are able to earn an average profit of forty to fifty thousand dollars on their home projects. Without question, their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have had a significant part in their success. Nonetheless, your rehab and remodeling knowledge isn't bad either — in any case, you have already identified an ideal building contractor to start the project.
But how exactly can real estate investors get money? Should you approach a customary lending institution, much like a bank for financing, it can take, as a minimum, thirty to sixty days for your approval to come through and the funds to be dispersed. Due to the fact the sellers want a fast closing, that doesn't appear like a good idea to you in the slightest.
With banks bringing in tougher loan standards in recent years, it's become much harder for a self-employed individual to obtain a home loan, especially if his credit rating is not flawless. So does this leave you with no option, but to drop your aspiration of getting into the fix and flip business? Certainly not, due to the fact you can always use the Gloucester, Massachusetts hard money loan approach to pay for your home renovating project.
A hard money home loan in Gloucester promises what is possibly most important to real estate investors — a quick closing time of as little as 14 days. Also, hard money lenders are able to do funding up to 70% LTV of the property value, as identified by a credentialed third-party evaluator. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank financing. But the term lengths for these loans are comparatively shorter, making the interest rate far less important. As it pertains to short-term loans of a handful of years or even less, you should consider them just like you would other expenditures for the project. Right after you rehab and sell off the home, recovering this expense is just like recuperating the expense for stainless steel appliances you placed into the home.
In addition, even individuals with low credit can still be eligible for a hard money mortgage. Gloucester hard money lenders do not approve a loan strictly based on the borrower's credit score — rather they also examine the property or home, its location and value, and the home's capacity to pay back the loan on its own. The total amount that an individual can put down in advance for the property or home, how much experience he has in real estate investments, and selling price of equivalent homes in the vicinity are other factors that go into ascertaining a borrower's qualification for a hard money real estate loan.
Searching for a hard money lender in Gloucester to finance your fix and flip endeavor is not very challenging, as long as the opportunity before you is promising and boasts a strong prospect for returns. Submit the contact form on this page or give us a call to discuss the project you have in mind.
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