Hard Money Loans in Leominster
Suppose that you've encountered this excellent deal on a fix and flip property you found in an ideal neighborhood, and you're either a skilled real estate investor or a first-timer who hopes to try out flipping houses. Everybody knows that capable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, are able to generate a typical profit margin of $40,000 to $50,000 when they flip properties. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction talents have played an important role in their success. On the other hand, you're certain that your first class rehab and remodeling abilities will assist you to do a quality job on this home — what's more, you already have arranged to have one of the premier building contractors in the business to take on the project.
But where can real estate investors find capital? A standard lending institution, say for example a bank, takes a minimum of 1 to 2 months to approve the mortgage and hand over the monies. Because most home owners wish to have a fast closing, it may be best to start looking for other financing alternatives.
With banks adding more challenging loan criteria in the recent past, it's become more challenging for a self-employed individual to find a home loan, especially if his credit score is not optimal. So must you give up and forego your desire to embark into fix and flips? Definitely not, because you also have the Leominster hard money loan option.
A hard money home loan in Leominster boasts what's probably most essential to real estate investors — a very fast closing time period of as few as 2 weeks. Additionally, financing is made up to 70% loan-to-value of the as-is house's valuation, as calculated by a professional appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more pricey than bank lending products. But if you understand these loans are not long-term home loans, the rate may be misleading. Short-term loans of a couple months to a few years are best approached in terms of cost of capital, similar to all other expenditures associated with a project. And as soon as you have finally flipped the property, recovering this expense is the exact same as recovering the expense for the bathroom or other upgrades you performed.
Also, it is simple to qualify for a hard money mortgage, regardless of whether your credit score is not that extraordinary. Leominster hard money lenders do not take on a loan strictly on the basis of the applicant's credit score — instead they will analyze the property, its location and value, and the home's ability to pay back the financing without the help of the person. The amount that an applicant can put upfront for the home, his past real estate experience, and price range of comparable homes in the same vicinity are various other details that go into establishing a person's suitability for a hard money real estate loan.
So should you run into a good and worthwhile flipping opportunity, rest assured you'll have a hard money lender in Leominster, willing to lend you the funds you will need. Complete the form on this page or get in touch with us via phone and let's discuss your property or properties.
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