Hard Money Loans in Groton
Suppose you've stumbled upon this truly good deal on a fix and flip property in an ideal neighborhood, and you are either a skilled real estate investor or a newbie who is looking to try his hand at flipping. Everyone knows that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, are able to make an average profit of $40,000 to $50,000 in their rehab business. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction skills have been major factors to their successes. With that being said, you've also been cultivating your rehab and renovation skills, have a building contractor lined up and are certain that you will be able to do a bang up job on this house.
But where can you get the needed financing for flipping? For those who go after a regular bank loan, you will have to wait somewhere around 30-60 days up until the time the mortgage loan is authorized and the money is accessible. Since the majority of home owners give preference to a fast closing, you may have to begin seeking out additional financing options.
As well as this, for those who have an unfavorable credit rating or do not have a regular income, it is usually more difficult to be eligible for bank financing, considering the tougher loan requirements banks have introduced as of late. So will a lack of funds prevent you from sticking to your aspirations? Definitely not, seeing as you always have the Groton hard money loan option.
A hard money home loan in Groton promises what's probably most desired by real estate investors — a quick closing time period of as little as 2 weeks. What's more, the LTV value can reach up to 70% of the property value, as evaluated by a certified appraiser. Some people regard hard money real estate loans to be more costly than customary financing, considering lending rates of such loans typically start out at 10%. But the term lengths for these loans tend to be comparatively shorter, which means the interest rate is much less significant. Short-term loans of a couple months to a few years are best looked at as cost of capital, similar to every other expense associated with a project. Once you have turned the property and have made a good financial gain, you can recover this expense from the house — similar to recovering the money spent on the brand-new kitchen appliances that you've put in.
Aside from that, hard money mortgages are not hard to qualify for, even when you have very bad credit. Groton hard money lenders don't authorize a loan strictly judging by the customer's credit score — rather they will analyze the home, its valuation and location, and the property's capacity to pay back the loan by itself. How much a person can put upfront towards the house, how much practical experience he has in real estate investments, and selling price of equivalent homes in the area are various other factors that go into ascertaining a person's suitability for a hard money real estate loan.
So in case you have found an excellent fixer-upper with a significant chance of returns, you have also stumbled upon a hard money lender in Groton who's happy to finance your flipping projects. Fill out the form or get in touch with us via phone and let's discuss the property you have in mind.
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