Hard Money Loans in Kennebunk
Suppose you've stumbled upon this excellent deal for a fix and flip property in a great location, and you're either a seasoned real estate investor or a newbie who wants to try out flipping houses. Professional home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a gain of forty to fifty grand for the majority of homes. Naturally, you also understand that their great results are attributed to the simple fact that they are professionals, are knowledgeable in hard money loans, they understand the market quite well and furthermore, they are good at working an auction to buy their houses at a good deal. On the other hand, you're convinced that your first class rehab and renovation skills will enable you to do a great job on the home — additionally, you have already lined up one of the best building contractors in the area to take on this project.
But how can you obtain the necessary capital for flipping? In the event you approach a standard lender, much like a bank for a loan, it's likely going to take, as a minimum, thirty to sixty days for the acceptance to be completed and the money to be accessible. So if you will be expecting a fast closing, you need to be aware that this could set you back by a couple weeks, causing you to lose out on the opportunity.
To add to it, banks have been tightening up their lending standards in recent times, which makes it difficult for a person to receive a typical home loan if their credit score is not flawless or he does not possess a regular salaried occupation. So will a lack of funds keep you from pursuing your ambitions? By no means, particularly when Kennebunk hard money loans will assist you to realize great things in real estate.
A hard money home loan in Kennebunk provides you with what's probably most important to real estate investors — a quick closing time of as few as fourteen days. Besides that, hard money lenders are capable of doing funding up to 70% LTV of the property or home's valuation, as determined by a professional third-party evaluation. With interest rates starting off around 10%, hard money real estate loans might appear, initially, to be higher in price in comparison with traditional bank financing. But usually, the rate of interest isn't as relevant for these loans, simply because they aren't long-term loans. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, similar to any other expense related to a project. Right after you fix up and resell the home, recovering this expense is just like recovering the cost of the home appliances you installed in the house.
Also, it's easy to be eligible for a a hard money mortgage, even when your credit situation is not that superb. Kennebunk hard money lenders do not take on a loan exclusively based on the applicant's credit score — instead they also evaluate the home, its valuation and location, and the home's capacity to pay back the financing on its own. On top of that, if the applicant can demonstrate prior experience in comparable real estate ventures, can put down money towards a down payment, and the price of comparative homes in the neighborhood works to his benefit, he has a good likelihood of qualifying to get a hard money real estate loan.
Finding a hard money lender in Kennebunk to fund your flipping business is not very hard, so long as the opportunity before you is promising and boasts the right prospect for returns. Fill out the form or call us to discuss your property or properties.
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