Hard Money Loans in Granby
Suppose you've come across this excellent deal for a fix and flip property you found in a terrific neighborhood, and you happen to be either a seasoned real estate investor or a newbie who is looking to try out flipping houses. Professional residential home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping series, are able to bring in a gain of forty to fifty grand on a regular basis. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction talents have played a significant role in their successes. With that being said, you have recently been brushing up your rehab and remodeling knowledge, have got a contractor lined up and are confident that you're capable of doing a bang up job on this home.
But financing is a different question altogether. A traditional lender, for instance a bank, takes a minimum of 1 to 2 months to authorize the loan and provide the money. Given that sellers prefer a fast closing, you might want to begin seeking out some other funding alternatives.
With banks establishing tougher loan criteria in recent times, it is more challenging for a self-employed individual to obtain a mortgage loan, particularly if his credit situation is not perfect. So do you have to give up and abandon your dream to embark into the real estate market? Most certainly not, because you also have the Granby, Connecticut hard money loan option.
A hard money home loan in Granby promises what is possibly most crucial to real estate investors — a quick closing time of as few as 2 weeks. What's more, the LTV value can range up to 70% of the home's valuation, as determined by a certified appraiser. Some individuals regard hard money real estate loans to be more pricey than ordinary financing, since the interest rates for these loans often start out at 10%. But if you consider these are not long-term home loans, the interest rate may be misleading. As it pertains to short-term loans of several years or less, you should think of them much like you would other expenditures for your project. After you remodel and sell the home, recuperating this expense is the same as recouping the one for new kitchen appliances you put in the place.
Additionally, it is simple to qualify for a hard money mortgage, regardless if your credit rating is not that extraordinary. Rather than focusing primarily on the applicant's credit score or source of income, Granby hard money lenders, who could be a private company or an individual person, authorize a loan after examining the property value, how easy it will be to market, where it is located, and the probability of recouping their capital if they have to foreclose the loan. How much money a borrower can put down in advance for the property or home, how much experience he has in real estate investments, and selling price of comparative homes in the neighborhood are other details that go into determining a person's qualification for a hard money real estate loan.
So should you come across a good and profitable investment opportunity, rest assured you will have a hard money lender in Granby, prepared to lend you the cash you'll need. Submit the form on this page or give us a call and let's discuss your project.
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