Hard Money Loans in Harrington
A fabulous buy on a fix and flip opportunity located in a good area of the city all of a sudden shows up — sounds too good to be true. You've probably heard that professional house flippers, similar to the couple on HGTV's Flip or Flop, enjoy an impressive average profit margin close to $40,000 – $50,000. Undoubtedly, you also are aware that their successes are credited to the fact that they are industry experts, are knowledgeable in hard money loans, they know the market really well and furthermore, they know how to work a public auction for getting a good deal. Nonetheless, your rehab and remodeling knowledge isn't that bad either — besides, you have already found a good contractor to tackle this home.
But how exactly can real estate investors obtain funding? When you go after a conventional loan via a bank, you will wind up waiting roughly one to two months up until the time the mortgage is authorized and the funds are ready. Since the majority of sellers would prefer a fast closing, it may be best to begin searching for other financing alternatives.
To add to it, banks have been tightening up their lending requirements in recent times, rendering it more difficult for someone to receive a conventional loan if their credit score is not flawless or he does not possess a consistent salaried occupation. So will a shortage of financing keep you from following your dream? Under no circumstances, especially while Harrington hard money loans can help you accomplish many amazing things in the real estate market.
If you should get a hard money home loan in Harrington, you will get what is probably most vital to real estate purchases throughout the country — a fast closing of about a couple weeks. Plus, the LTV value can reach up to 70% of the property value, as determined by a competent appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more expensive than bank financing. But once you appreciate that these are not long-term home loans, the rate may be misleading. The price tag on such short-term loans should be looked at much like every other financial outlay that you would need to meet for the project. Once you've sold the property and have made a good financial gain, you'll be able to get back this expense from the property — similar to recouping the money spent on the brand-new kitchen appliances that you have put in.
Besides, hard money mortgages are easy qualifying, even in the event you have very bad credit. The applicant's credit score will not be the sole determining factor for Harrington hard money lenders — they also analyze the piece of real estate, what is it valued at, where it is located, and its ability to return their investment if everything does not work out as planned. The total amount that a borrower can put down in advance for the house, his real estate experience, and selling price of comparable homes in the vicinity are other details that go into establishing a person's qualification for a hard money real estate loan.
If you happen to have stumbled on a really good real estate opportunity with a huge prospect of returns, you have also discovered a hard money lender in Harrington that's willing to provide funding for your flipping ventures. Fill out the contact form on this page or call us and let's discuss the property or properties you have in mind.
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