Hard Money Loans in Newton
There is this phenomenal possibility for rehabbing and flipping this wonderful out of date condo in a very good location and it seems a lot like the deal you have been looking forward to for quite some time. You've heard that veteran property flippers, such as the couple on HGTV's Flip or Flop, turn an impressive average profit margin near $40,000 – $50,000. No need to explain that their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction talents have had a big role in their success. With that being said, you have recently been developing your rehab and remodeling skills, have a very good licensed contractor ready for the project and are certain that you're capable of doing an impressive job on this house.
But how can real estate investors find funds? When you apply for a normal loan from the bank, you will need to wait somewhere around 30-60 days before the financing is authorized and the funds are accessible. So if you will be looking for a fast closing, you have to recognize that this may cost you a few weeks, making you miss out on the opportunity.
To add to it, banks have been tightening up their lending standards as of late, which makes it tough for people to get a regular loan if their credit rating is not perfect or he doesn't have a regular salaried job. So does that leave you with no other option, but to give up your aspiration to venture into flipping? Most certainly not, seeing as you always have the Newton hard money loan alternative.
A hard money home loan in Newton can provide what is considered imperative to many real estate transactions — a very fast closing of just a few weeks and at times less. Also, hard money lenders are able to do funding up to 70% LTV of the property or home value, as identified by a certified third-party evaluation. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be more expensive than bank lending products. But once you consider these loans are not long-term loans, the interest rate tends to be misleading. Short-term loans of a couple months to a handful of years are best understood in terms of cost of capital, the same as any other financial outlay in connection with a project. And once you have flipped the house, recuperating this expense is the exact same as recovering the expense for all the bathroom or other updates you did.
Apart from this, hard money mortgages are not hard to qualify for, whether or not you have got a weak credit score. Rather than focusing exclusively on the person's credit score or wages, Newton hard money lenders, who could be a private company or an individual, authorize a loan as a result of examining the property value, its salability, its location, and the likelihood of getting back their money if they have to foreclose the loan. The amount that an applicant can put down beforehand towards the house, how much practical experience he has in real estate investments, and selling price of equivalent homes in the area are additional details that go into establishing a person's eligibility for a hard money real estate loan.
So should you run into a really good and lucrative investment opportunity, feel comfortable knowing you will have a hard money lender in Newton, able to loan you the money you will need. Fill out the contact form or get in touch with us via phone and let's discuss your property or properties.
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