Hard Money Loans in Kingston
Suppose you've run into this excellent deal on a fix and flip property located in a terrific location, and you're either an experienced real estate investor or a newbie who really wants to try his hand at flipping. You've probably heard that veteran home flippers, like the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit of around $40,000 – $50,000. And yes, they are helped in a major way due to their professional knowledge, auction expertise and familiarity with hard money loans. That said, you have recently been cultivating your rehab and remodeling skills, have a very good licensed contractor ready for the project and are positive that you can do a stellar job for this house.
But how do you obtain the needed financing for home flipping? If you approach a common lending institution, such as a bank for a mortgage loan, it's in all likelihood going to take at least 4-8 weeks for the acceptance to come through and the funds to be given out. So if you will be hoping for a fast closing, it's important for you to be aware that this may cost you a couple of weeks, making you lose out on the home.
To add to it, banks have been tightening up their lending standards in recent times, which makes it challenging for a person to receive a regular home loan if their credit score is not perfect or he doesn't have a consistent salaried occupation. So will a lack of funds stop you from sticking to your aspirations? Certainly not, because you always have the Kingston, Rhode Island hard money loan option.
A hard money home loan in Kingston gives you what is viewed as essential to most real estate deals — a fast closing of just a couple of weeks and more often than not even less. Furthermore, hard money lenders are able to do lending up to 70% LTV of the property or home value, as estimated by a licensed third-party evaluation. Some individuals consider hard money real estate loans to be more costly than customary loans, considering interest rates for such loans ordinarily start out at 10%. But in reality, the lending rate is not as relevant for these loans, since they will never be long-term loans. When it comes to short-term loans of a handful of years or less, you should think of them the same as you would for any other expense for the project. When you have turned the home and have made a positive profit, you'll be able to get back this expense from the property or home — similar to recovering the money spent on the brand-new appliances for the kitchen that you put in.
Aside from that, hard money mortgages are easy qualifying, even if you have got poor credit. Kingston hard money lenders do not take on a loan strictly based on the customer's credit score — instead they will examine the property, its valuation and location, and the property's capacity to pay back the financing independent of the applicant. On top of that, if the person can demonstrate prior experience in equivalent real estate projects, can put down cash towards the down payment, and the price of comparable houses in the vicinity works to his benefit, he stands a very good shot of qualifying to get a hard money real estate loan.
So should you run into an outstanding and worthwhile flipping opportunity, relax knowing you'll have a hard money lender in Kingston, prepared to lend you the money you need. Fill out the contact form on this page or give us a call to discuss the property you have in mind.
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