Hard Money Loans in Haverhill
Suppose you've run across this really great deal for a fix and flip property in a great neighborhood, and you are either a skilled real estate investor or a newbie who really wants to try his hand at flipping. You may have heard that competent home flippers, like the husband and wife on HGTV's Flip or Flop, turn an impressive average profit of around $40,000 – $50,000. It's fair to say their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction skills have had a big role in their success. Still, your rehab and renovation skills aren't bad either — in any case, you have already located a suitable building contractor to handle the job.
But financing is usually a separate issue altogether. In the event you approach a common lender, such as a bank for funding, it's very likely going to take, at the very least, thirty to sixty days for your acceptance to be completed and the funds to be accessible. Given that home owners give preference to a fast closing, you might have to start searching for additional financing alternatives.
To add to it, banks have been tightening their lending criteria in recent times, which makes it hard for someone to obtain a traditional home loan if their credit rating is not perfect or he doesn't have a consistent salaried job. So will a lack of financing keep you from sticking with your aspirations? Never, due to the fact you could always go the Haverhill hard money loan route to fund your rehab project.
A hard money home loan in Haverhill offers what is deemed imperative to most real estate transactions — a very fast closing of only a 2-3 weeks and at many times even less. Also, hard money lenders are capable of doing lending up to 70% LTV of the property's valuation, as determined by a credentialed third-party evaluation. With rates starting out near 10%, hard money real estate loans may seem, at first, to be more costly when compared with traditional bank lending products. But usually, the lending rate isn't as pertinent for these loans, since they are not long-term loans. Short-term loans of a couple of months to a few years are best thought of in terms of cost of capital, very much like all other expenditures related to a project. Right after you renovate and unload the property, recovering this expense is no different than recouping the one for home appliances you placed into the place.
In addition, even individuals with poor credit can easily be eligible for a hard money mortgage. Haverhill hard money lenders don't authorize a loan strictly on the basis of the person's credit score — rather they will assess the property or home, its valuation and location, and the home's capacity to pay back the loan independent of the person. Additional criteria that have an impact on an individual's approval for a hard money real estate loan can include what amount of money he is in a position to put into a down payment, his previous experience being a real estate investor, and selling price of comparable, recently sold homes in the vicinity.
So any time you come across an outstanding and profitable investment opportunity, relax knowing you'll have a hard money lender in Haverhill, prepared to lend you the capital you will need. Fill out the form or call us and let's discuss the property you have in mind.
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