Hard Money Loans in Harrisville
Imagine you've run across this excellent bargain for a fix and flip property in a great location, and you're either a seasoned real estate investor or a newbie who hopes to try out flipping houses. You've heard that professional property flippers, such as the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average profit near $40,000 – $50,000. Of course, you also realize that their great results are credited to the simple fact that they are professionals, are proficient in hard money loans, they know the market really well and furthermore, they are good at working an auction to purchase their properties at an appropriate price. On the other hand, you're certain that your superb rehab and renovation talents can help you do a great job on the home — in addition, you already have lined up one of the best contractors in town to handle the job.
But how can you get the necessary capital for home flipping? If you apply for an ordinary bank loan, you will need to wait approximately 30-60 days until eventually the financing is authorized and the funds are available. Thus if you are wishing for a fast closing, you must be aware that this could cost you a few weeks, causing you to miss out on the home.
To add to it, banks have already been tightening their lending standards in recent years, rendering it more tough for someone to get a typical home loan if their credit rating is not flawless or he is lacking a regular salaried profession. So does this mean you are without an option, but to abandon your dream of getting into home renovating? Never, because you could always go the Harrisville, Rhode Island hard money loan route to finance your rehab project.
If you apply for a hard money home loan in Harrisville, you have access to what's perhaps most essential to real estate transactions across the country — a fast closing of about 14 days. In addition, the LTV value can range up to 70% of the home's valuation, as estimated by a competent appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank financing. But when you consider these loans are not long-term mortgage loans, the rate tends to be misleading. The cost of such short-term loans should be looked at much like every other expense that you would encounter during the project. After you fix up and unload the property, recuperating this expense is the same as recouping the expense for stainless steel appliances you placed into the place.
What's more, it is easy to obtain a hard money mortgage, even in the event your credit situation is not that impressive. The applicant's credit score will not be the exclusive deciding factor for Harrisville hard money lenders — in addition, they analyze the property, its market value, where it is located, and its potential to earn back their investment if everything does not work out as planned. Other factors that influence a customer's eligibility for a hard money real estate loan can include the amount he is able to put towards a down payment, his former experience as a real estate investor, and price range of comparative, fairly recently sold homes in the area.
So if you have stumbled upon an excellent fixer-upper with a huge probability of returns, you have also discovered a hard money lender in Harrisville that's happy to provide funding for your rehab project. Fill out the form on this page or call us to talk about the property you have in mind.
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