Hard Money Loans in Harwich
Suppose that you've encountered this excellent deal on a fix and flip property located in a great location, and you happen to be either a seasoned real estate investor or a newbie who wants to try out flipping homes. You've probably heard that competent home flippers, like the married couple on HGTV's Flip or Flop, enjoy an impressive average profit margin close to $40,000 – $50,000. And sure, they are helped in a major way due to their professional experience, auction skills and understanding of hard money loans. Having said that, you've also been brushing up your rehab and renovation knowledge, have a very good contractor ready to go and are confident that you're capable of doing an impressive job on this property.
But where can you get the necessary funding for flipping? A typical lender, say for example a bank, takes at least 1 to 2 months to approve the mortgage and deliver the capital. Due to the fact the sellers are seeking a fast closing, that doesn't appear to be a good idea to you at all.
On top of this, banks have already been tightening up their lending criteria in recent years, which makes it tough for people to get an ordinary home loan if their credit rating is not flawless or he does not possess a regular salaried occupation. So does that mean you have no option, but to drop your aspiration to venture into the fix and flip business? Certainly not, because you always have the Harwich, Massachusetts hard money loan option.
If you should put in an application for a hard money home loan in Harwich, you will get what is possibly most vital to real estate purchases throughout the country — a very fast closing of about fourteen days. What's more, the LTV value can range up to 70% of the place's valuation, as estimated by a certified appraiser. With the loan rates starting out around 10%, hard money real estate loans might appear, initially, to be more costly in comparison with traditional bank financing. But the lengths of these loans are comparatively short, making the interest rate far less important. When it comes to short-term loans of one or two years or less, you should think of them the same as you might for every other expense for the project. Once you've sold the house and have made a successful return, you're able to recover this expense from the property or home — much like recovering the cost of brand-new kitchen appliances that you've installed.
Furthermore, even individuals with bad credit will be able to be eligible for a hard money mortgage. The applicant's credit score is not the lone deciding factor for Harwich hard money lenders — in addition, they evaluate the house, how much it is worth, where it is located, and its potential to return their financial commitment if things do not go as planned. How much a person can put down beforehand towards the property or home, how much practical experience he has in real estate investments, and selling price of comparable properties in the same neighborhood are other details that go into analyzing an individual's qualification for a hard money real estate loan.
So any time you come across a very good and profitable investment opportunity, feel comfortable knowing you will have a hard money lender in Harwich, ready to loan you the cash you will need. Enter your info into the contact form or call us to discuss your property.
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