Hard Money Loans in Great Barrington
A fabulous bargain on a fix and flip property located in a nice subdivision all of a sudden shows up — seems too good to be true. Professional property flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping series, are able to generate a gain of forty to fifty grand for most homes. And without a doubt, they are helped in a big way by their professional experience, auction expertise and familiarity with hard money loans. Nonetheless, your rehab and renovation skills aren't bad either — aside from that, you've already found a good licensed contractor to tackle the home.
But where can you get the necessary funding for flipping? When you approach a standard lending institution, such as a bank for funding, it more than likely will take at least thirty to sixty days for the acceptance to be completed and your funds to be sent out. Given that home owners prefer a fast closing, you may want to start searching for additional funding alternatives.
With banks bringing in harder loan standards in the past several years, it's become harder for a self-employed person to find a mortgage loan, particularly if his credit situation is not optimal. So does this mean you have no option, but to abandon your dream to venture into the fix and flip business? Never, considering that you could always go the Great Barrington, Massachusetts hard money loan route to finance your home flipping project.
When you apply for a hard money home loan in Great Barrington, you'll get what's possibly most important to real estate offers throughout the country — a quick closing of around two weeks. And additionally, financing can be made up to 70% loan-to-value of the as-is property value, as calculated by a qualified appraiser. Some people believe hard money real estate loans to be more expensive than standard financing, because the lending rates for such loans generally start off at 10%. But the time frames of these loans tend to be relatively short, which makes the rate far less important. Short-term loans of a couple of months to a handful of years are best understood in terms of cost of capital, much like all other costs related to a project. And when you have flipped the home, recuperating this expense is comparable to recovering the expense for the kitchen and bath improvements you performed.
Moreover, even someone with bad credit can still qualify for a hard money mortgage. The customer's credit score will not be the sole determining factor for Great Barrington hard money lenders — additionally, they examine the home, what is it valued at, where it is located, and its capacity to bring back their investment if everything does not go as planned. Additional factors that affect an applicant's eligibility for a hard money real estate loan can include the amount he can put towards a down payment, his previous experience as a real estate investor, and selling price of comparable, just recently sold residences in the vicinity.
So in case you have stumbled on a really great fixer-upper with a significant probability of returns, you've also discovered a hard money lender in Great Barrington that is willing to provide financing for your rehab project. Complete the form on this page or call us and let's talk about the project you have in mind.
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