Hard Money Loans in Hooksett
There is this amazing possibility for rehabbing and flipping this nice old property or home in a fantastic part of town and it seems a lot like the deal you have been anticipating for quite some time. Many people know that capable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, can readily turn an average profit of forty to fifty thousand dollars in their rehab business. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction talents have been large factors to their success. Nonetheless, your rehab and renovation skills aren't that bad either — in any case, you have already found the right general contractor to start the home.
But how can you obtain the needed capital for home flipping? Should you get in touch with a common lending institution, much like a bank for a loan, it's likely going to take a minimum of thirty to sixty days for the approval to come through and your money to be furnished. Since most sellers would prefer a fast closing, it may be best to begin searching for other funding alternatives.
With banks introducing more challenging loan standards in recent times, it is tougher for a self-employed individual to find a mortgage loan, especially when his credit circumstances are not optimal. So does this mean you are without an option, but to give up your dream to venture into the fix and flip business? By no means, considering that you could always use the Hooksett hard money loan approach to finance your rehab project.
A hard money home loan in Hooksett promises what is possibly most important to real estate investors — a quick closing time of as little as 2 weeks. Also, hard money lenders can approve loans up to 70% LTV of the property's valuation, as assessed by a certified third-party evaluator. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more expensive than bank loans. But when you consider these loans are not long-term home loans, the rate of interest can be misleading. Short-term loans of a couple months to a few years are best looked at as cost of capital, similar to all other expenditures associated with a project. And as soon as you've sold the property, recovering this expense is the exact same as recuperating the expense for the kitchen and bath upgrades you did.
What's more, it's easy to be eligible for a a hard money mortgage, even when your credit situation is not that impressive. As an alternative for focusing entirely on the person's credit score or income, Hooksett hard money lenders, who could be a private company or an individual, say yes to a loan after assessing the property value, ease of marketability, where it is located, and the possibility of recovering their capital in case of foreclosure. Adding to this, if the applicant can demonstrate past experience in equivalent real estate endeavors, can place down money towards a down payment, and the price of similar homes in the area works to his benefit, he stands a very good likelihood of qualifying to get a hard money real estate loan.
So in case you have found an excellent real estate opportunity with a huge prospect of returns, you have also found yourself a hard money lender in Hooksett that is willing to provide funding for your rehab venture. Fill out the contact form or call us to discuss the property or properties you have in mind.
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