Hard Money Loans in Groton
Suppose you've come across this really great bargain for a fix and flip property you found in a terrific location, and you are either a seasoned real estate investor or a newbie who really wants to try his hand at flipping. Professional home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are able to bring in a profit of $40-$50k for most homes. Without question, their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have been major factors to their results. That said, you've recently been brushing up your rehab and remodeling skills, have got a contractor arranged and are positive that you're capable of doing an impressive job for this property.
But where precisely do real estate investors obtain money? A traditional lender, like for example a bank, takes at least one to two months to approve the loan and deliver the money. With the home owners wanting a fast closing, that doesn't seem like a great idea to you in the slightest.
With banks bringing in more challenging loan guidelines in recent times, it's become harder for a self-employed individual to get a home loan, particularly if his credit score is not flawless. So do you have to give up and forego your desire to venture into fix and flips? Absolutely not, because you also have the Groton, Massachusetts hard money loan option.
A hard money home loan in Groton promises what is possibly most crucial to real estate investors — a quick closing time period of as few as a few weeks. What's more, the LTV value can reach up to 70% of the home value, as estimated by a credentialed appraiser. With interest rates starting off around 10%, hard money real estate loans might seem, at first, to be higher priced as compared with conventional bank financing. But usually, the interest rate isn't as useful a measure for these loans, given that they aren't long-term financing. When it comes to short-term loans of several years or even less, you should think about them identical to every other expense for the project. Once you have sold the house and have made a good gain, you're able to reclaim this expense from the property — similar to recouping the money spent on the brand-new home appliances that you put in.
Apart from this, hard money mortgages are not hard to qualify for, regardless if you posses less-than-perfect credit. The borrower's credit score will not be the lone deciding factor for Groton hard money lenders — additionally, they look at the home, what is it valued at, its location, and its capacity to earn back their financial commitment if things do not go as planned. On top of that, if the borrower have proven experience in comparable real estate ventures, can place down cash for the down payment, and the cost of equivalent homes in the neighborhood works to his benefit, he stands an excellent chance of qualifying to obtain a hard money real estate loan.
Finding a hard money lender in Groton to finance your renovation project is not difficult, as long as the opportunity that lies before you is promising and possesses a good prospect for returns. Fill out the contact form or get in touch with us via phone and let's discuss the project you have in mind.
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