Hard Money Loans in Greenwich
An incredible buy on a fix and flip property located in an excellent neighborhood all of a sudden shows up — sounds too good to be true. Professional home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a profit of $40-$50k for the majority of homes. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction skills have played a significant role in their results. Nonetheless, your rehab and remodeling skills aren't that bad either — aside from that, you have already identified a good contractor to handle the home.
But how do you obtain the needed funding for home flipping? A traditional lending institution, like for example a bank, takes at the very least 1 to 2 months to authorize the mortgage and provide the monies. Given that home owners prefer a fast closing, it may be advisable to start seeking out additional funding alternatives.
On top of this, banks have already been tightening their lending standards in recent years, making it hard for someone to obtain a traditional home loan if their credit situation is not flawless or he is lacking a consistent salaried job. So does this mean you have no option, but to drop your dream of venturing into the fix and flip business? Definitely not, seeing as you also have the Greenwich hard money loan option.
If you decide to get a hard money home loan in Greenwich, you're going to get what's perhaps most essential to real estate transactions across the country — a quick closing of around fourteen days. Besides that, hard money lenders are able to do funding up to 70% LTV of the property or home value, as assessed by a licensed third-party appraiser. With the rates starting off near 10%, hard money real estate loans may appear, at first, to be higher priced as compared with conventional bank financing. But the term lengths for these loans tend to be quite short, making the interest rate less important. The price tag on such short-term loans ought to be evaluated on par with every other cost that you might encounter during the project. Right after you rehab and sell the property, recouping this expense is no different than recouping the money you spent for stainless steel appliances you installed in the property.
What's more, it is simple to obtain a hard money mortgage, regardless if your credit situation is not that great. Greenwich hard money lenders do not approve a loan strictly on the basis of the customer's credit score — instead they also assess the property, its location and value, and the property's capacity to pay back the loan independent of the person. On top of this, if the individual have proven experience in equivalent real estate projects, can put down money for a down payment, and the cost of equivalent properties in the area works to his benefit, he stands a good likelihood of being approved to obtain a hard money real estate loan.
So in the event you run into a good and profitable investment opportunity, feel comfortable knowing you'll have a hard money lender in Greenwich, equipped to lend you the capital that you need. Complete the form or call us and let's talk about your property.
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