Hard Money Loans in Hollis
A remarkable bargain on a fix and flip opportunity located in an excellent neighborhood suddenly shows up — sounds so good that it is hard to believe. You've probably heard that veteran property flippers, such as the married couple on HGTV's Flip or Flop, have a remarkable average profit margin near forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction talents have played an important part in their success. On the other hand, you're certain that your superb rehab and renovation talents can help you do an outstanding job on the project — furthermore, you already have lined up one of the finest general contractors in the business to take on this project.
But where do you obtain the necessary funding for flipping? If you apply for a conventional loan from the bank, you will end up waiting approximately 1-2 months before the mortgage is authorized and the funding is available. With the sellers looking for a fast closing, that does not appear like a good idea to you in the slightest.
Furthermore, for those who have an unfavorable credit rating or do not receive a consistent income, it is normally more difficult to be eligible for a bank financing, with the more stringent loan guidelines banks have introduced recently. So will a lack of financing stop you from sticking with your ambitions? Not at all, particularly when Hollis hard money loans can help you achieve many amazing things in the real estate world.
A hard money home loan in Hollis provides what's considered crucial to many real estate deals — a very fast closing of just a 2-3 weeks and more often than not less. Further, loan amounts can be made up to 70% loan-to-value of the "as is" house value, as established by a licensed appraiser. A number of people believe hard money real estate loans to be higher in price than ordinary loans, since the interest rates of such loans generally start out at 10%. But usually, the rate of interest is not as useful a measure for these loans, since they aren't long-term financing. The price of such short-term loans should be viewed much like any other expenditure that you will have to meet pertaining to the project. Right after you remodel and sell off the house, recouping this expense is just like recovering the cost of the home appliances you installed in the home.
Apart from this, hard money mortgages are not hard to qualify for, even when you have very bad credit. Hollis hard money lenders do not approve a loan strictly judging by the applicant's credit score — instead they also evaluate the property, its location and value, and the property's capacity to pay back the financing independent of the person. Other criteria that affect an applicant's approval for a hard money real estate loan can include the amount he can put into a down payment, his past experience as a real estate investor, and selling price of comparable, recently sold residences in the neighborhood.
So any time you run into a good and profitable flipping opportunity, relax knowing you'll have a hard money lender in Hollis, in a position to loan you the capital you'll need. Complete the contact form on this page or give us a call and let's discuss the property you have in mind.
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