Hard Money Loans in Groton
There's this amazing possibility for renovating and flipping this wonderful old house in a very good part of town and it looks a lot like the deal you've been eagerly waiting on for quite some time. Everyone knows that skilled professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, can readily generate a typical profit margin of $40,000 to $50,000 in their rehab business. Without question, their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have played a significant role in their results. Still, your rehab and remodeling knowledge isn't that bad either — besides, you've already found a suitable licensed contractor to take on this project.
But financing is a different problem altogether. A standard lending institution, for instance a bank, takes at least 1 to 2 months to consent to the mortgage and hand over the funds. With all the sellers looking for a fast closing, that doesn't seem like a good option to you whatsoever.
As well as this, for those who have a less-than-perfect credit situation or do not have a conventional source of income, it usually is more difficult to obtain a bank loan, considering the stricter loan requirements banks have issued of late. So does this leave you with no option, but to abandon your dream of getting into rehabbing? Certainly not, because you always have the Groton hard money loan option.
A hard money home loan in Groton gives you what is regarded as vital to many real estate sales — a quick closing of just a few weeks and sometimes even less. And additionally, loans can be done for up to 70% loan-to-value of the "as is" value, as established by a professional appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as more pricey than bank financing. But usually, the lending rate is not as useful a measure for these loans, because they are not long-term loans. The price tag on such short-term loans ought to be viewed much like every other financial outlay that you will have to meet for the project. Once you have turned the property and have made a good return, you're able to recover this expense from the property or home — much like recovering the cost of brand-new home appliances that you've put in.
Furthermore, even individuals with low credit will be able to qualify for a hard money mortgage. As an alternative for focusing primarily on the applicant's credit score or wages, Groton hard money lenders, who can be a privately owned company or an individual person, authorize a loan after analyzing the property value, its marketability, its location, and the possibility of getting back their money in the event of foreclosure. On top of this, if the applicant have proven experience in comparable real estate projects, can put down cash towards a down payment, and the value of comparable homes in the vicinity works in his favor, he will have a really good chance of being eligible for a hard money real estate loan.
So any time you come across a really good and profitable investment opportunity, relax knowing you'll have a hard money lender in Groton, prepared to lend you the funds you need. Enter your info into the contact form on this page or call us to discuss the project you have in mind.
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