Hard Money Loans in Maynard
Suppose you've stumbled upon this truly good deal on a fix and flip property located in an ideal neighborhood, and you are either a seasoned real estate investor or a newbie who hopes to try out flipping homes. Expert house flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a gain of forty to fifty grand for the majority of homes. Naturally, you also realize that their results are attributed to the simple fact that they're industry experts, are well versed in hard money loans, they understand the marketplace quite well and in addition, they are good at working a public auction to purchase their properties at an appropriate deal. On the other hand, you are assured that your impressive rehab and remodeling skills will help you do a superb job for this home — in addition, you have already arranged to have one of the best general contractors in town to handle the job.
But financing is usually a separate question entirely. A traditional lender, say for example a bank, takes no less than 1 to 2 months to authorize the mortgage and deliver the cash. Because most sellers wish to have a fast closing, you might have to start searching for other funding options.
With banks establishing tougher loan requirements in the last few years, it is more challenging for a self-employed individual to get a home loan, especially if his credit situation is not flawless. So should you admit defeat and abandon your dream to venture off into fix and flips? Not at all, particularly while Maynard, Massachusetts hard money loans enable you to achieve great things in real estate.
A hard money home loan in Maynard offers what's viewed as imperative to most real estate transactions — a quick closing of just a 2-3 weeks and sometimes less. In addition, the LTV value can reach up to 70% of the property's valuation, as evaluated by a credentialed appraiser. With the interest rates starting off at about 10%, hard money real estate loans might seem, at first glance, to be higher in price as compared with conventional bank lending products. But the time frames of these loans tend to be quite short, which makes the rate much less important. As it pertains to short-term loans of one or two years or less, you should think of them much like you would other expenditures for the project. After you rehab and resell the home, recovering this expense is no different than recovering the expense for home appliances you put in the house.
Moreover, even an individual with weak credit can easily be eligible for a hard money mortgage. Maynard hard money lenders don't take on a loan solely according to the applicant's credit score — instead they also assess the property, its value and location, and the property's capability to pay back the loan independent of the borrower. Adding to this, if the individual have proven experience in equivalent real estate ventures, can place down cash towards the down payment, and the value of comparative homes in the area works to his benefit, he will have a really good shot of qualifying to get a hard money real estate loan.
So any time you come across a very good and worthwhile flipping opportunity, rest assured you will have a hard money lender in Maynard, in a position to lend you the capital you'll need. Submit the contact form or get in touch with us via phone and let's talk about the project you have in mind.
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