Hard Money Loans in Holden
Suppose that you've come across this excellent bargain on a fix and flip property you found in an ideal location, and you happen to be either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. You may have heard that veteran home flippers, much like the husband and wife on HGTV's Flip or Flop, turn a remarkable average return near forty to fifty thousand dollars. And yes, they are aided in a big way as a result of their professional knowledge, auction expertise and knowledge of hard money loans. Still, your rehab and renovation skills aren't bad either — besides, you've already located a suitable contractor to tackle this home.
But how can you obtain the needed financing for flipping? If you get in touch with a regular lending institution, much like a bank for a loan, it likely will take, as a minimum, four to eight weeks for your acceptance to come through and the money to be distributed. Thus if you happen to be wishing for a fast closing, it's important for you to realize that this will cost you a few weeks, causing you to lose out on the home.
To add to it, banks have been tightening up their lending standards in recent years, making it challenging for someone to get a regular home loan if their credit situation is not flawless or he doesn't have a regular salaried job. So must you admit defeat and forego your aspiration to get into real estate? Certainly not, on the grounds that you can always use the Holden, Massachusetts hard money loan approach to finance your home renovating project.
A hard money home loan in Holden provides what's possibly most desired by real estate investors — a fast closing time of as few as a few weeks. And additionally, loan amounts can be done for up to 70% loan-to-value of the "as is" property value, as calculated by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as more expensive than bank lending products. But the term lengths for these loans are relatively short, which means the rate is far less important. Short-term loans of several months to a few years are best approached as cost of capital, similar to every other financial outlay in connection with a project. And when you have turned the house, recovering this expense is identical to recuperating the expense for the bathroom updates you performed.
In addition, even an individual with weak credit can easily be eligible for a hard money mortgage. Holden hard money lenders don't take on a loan exclusively according to the applicant's credit score — instead they also assess the home, where it is located and what it is worth, and the property's capability to pay back the loan without the help of the applicant. The total amount that an applicant can put upfront towards the property, his real estate experience, and selling price of comparative properties in the same neighborhood are additional details that go into analyzing a person's qualification for a hard money real estate loan.
So any time you run into a very good and profitable flipping opportunity, feel comfortable knowing you will have a hard money lender in Holden, equipped to loan you the funds you may need. Fill out the form on this page or give us a call and let's discuss your project.
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