Hard Money Loans in Grafton
Suppose you've come across this truly good bargain for a fix and flip property in a great location, and you happen to be either a seasoned real estate investor or a newbie who wants to try out flipping homes. Professional property flippers, much like the young couple on Flip or Flop, HGTV's reality flipping program, are able to earn a gain of $40-$50k as an average on multiple occasions. And indeed, they are aided in a big way by their professional experience, auction expertise and knowledge of hard money loans. With that being said, you've also been cultivating your rehab and renovation knowledge, have got a contractor ready to go and are certain that you can do a stellar job on this house.
But funding can be a different issue altogether. A traditional lending institution, like for example a bank, takes at a minimum 1-2 months to approve the financing and deliver the funds. With the home owners wanting a fast closing, that does not appear like a good option to you whatsoever.
Moreover, should you have an unfavorable credit situation or don't have a consistent source of income, it may be tougher for you to qualify for a bank loan, considering the stricter loan guidelines banks have put in place of late. So will a shortage of financing keep you from following your dream? By no means, particularly when Grafton, Massachusetts hard money loans can help you accomplish great things in the real estate market.
When you get a hard money home loan in Grafton, you have access to what's probably most important to real estate offers across the country — a fast closing of about 2 weeks. In addition, the LTV value can range up to 70% of the property's valuation, as estimated by a competent appraiser. Some individuals regard hard money real estate loans to be more costly than ordinary financing, since the lending rates for these loans usually start at 10%. But the lengths of these loans are rather short, which makes the interest rate less significant. When it comes to short-term loans of one or two years or even less, you should look at them identical to any other expenditure for the project. Once you have turned the home and have made a good financial gain, you can recoup this expense from the home — very much like recovering the money spent on the brand-new kitchen appliances that you have put in.
Furthermore, even an individual with poor credit can easily be eligible for a hard money mortgage. Grafton hard money lenders do not authorize a loan exclusively according to the person's credit score — rather they additionally analyze the home, its location and value, and the property's ability to pay back the financing without the assistance of the person. The total amount that a borrower can put upfront for the home, how much experience he has in real estate investments, and price range of comparable homes in the same area are additional factors that go into analyzing an individual's suitability for a hard money real estate loan.
So in the event you come across a good and worthwhile investment opportunity, feel comfortable knowing you will have a hard money lender in Grafton, equipped to lend you the money you will need. Enter your info into the contact form or give us a call to talk about your property.
A loan specialist will be in touch shortly