Hard Money Loans in Griswold
You discovered this outstanding possibility for fixing and flipping this wonderful out of date condo in a fantastic area and it looks a lot like the deal you've been anticipating for quite some time. Everyone knows that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, can make an average profit of forty to fifty thousand dollars on their flips. Of course, you also recognize that their successes can be credited to the fact that they are experts, are proficient in hard money loans, they know market trends quite well and in addition, they are good at working an auction to purchase their homes at an appropriate price. Nonetheless, your rehab and remodeling knowledge isn't that bad either — in any case, you have already identified an ideal licensed contractor to take on this home.
But where precisely do real estate investors obtain money? For those who approach a regular lender, much like a bank for a loan, it more than likely will take, as a minimum, 30-60 days for your approval to be completed and your funds to be given out. Thus if you happen to be hoping for a fast closing, you need to be aware that this could set you back by a couple of weeks, causing you to miss out on the house.
To add to it, banks have already been tightening up their lending standards as of late, which makes it hard for people to receive a conventional loan if their credit situation is not perfect or he doesn't have a regular salaried profession. So will a lack of funding prevent you from following your aspirations? Never, on the grounds that you can always use the Griswold, Connecticut hard money loan approach to fund your home flipping project.
A hard money home loan in Griswold provides what's probably most essential to real estate investors — a fast closing time period of as little as a few weeks. Also, hard money lenders are capable of doing lending up to 70% LTV of the property or home's valuation, as estimated by a qualified third-party appraiser. With lending rates starting near 10%, hard money real estate loans may look, at first glance, to be more costly in comparison with traditional bank financing. But usually, the rate of interest is not as useful a measure for these loans, simply because they aren't long-term loans. The cost of such short-term loans ought to be looked at on par with every other cost that you will have to meet pertaining to the project. When you have sold the property or home and have made a good financial gain, you're able to recoup this expense from the home — much like recouping the money necessary for the brand-new kitchen appliances that you installed.
Aside from that, hard money mortgages are not difficult to qualify for, even when you have got poor credit. The borrower's credit score is not the primary determining factor for Griswold hard money lenders — additionally, they look at the piece of real estate, its market valuation, where it is located, and its capability to return their investment if things should not go as intended. Other variables that affect an individual's approval for a hard money real estate loan can include what amount of money he can put towards a down payment, his former experience being a real estate investor, and selling price of comparable, just recently sold homes nearby.
So if you have stumbled upon a really great real estate opportunity with a high potential for returns, you've also stumbled upon a hard money lender in Griswold that's prepared to provide financing for your rehab venture. Fill out the contact form on this page or get in touch with us via phone to discuss the property or properties you have in mind.
A loan specialist will be in touch shortly