Hard Money Loans in Plainfield
Imagine you've stumbled upon this truly good deal for a fix and flip property in an ideal neighborhood, and you are either a skilled real estate investor or a first-timer who wants to try out flipping homes. You've probably heard that professional home flippers, such as the couple on HGTV's Flip or Flop, enjoy an impressive average profit margin of around $40,000 – $50,000. And indeed, they are helped in a big way as a result of their professional experience, auction expertise and understanding of hard money loans. However, you're assured that your superb rehab and renovation skills can help you do a great job on this house — what's more, you already have arranged to have one of the best building contractors in the business to take on this project.
But funding can be a separate problem entirely. A typical lending institution, say for example a bank, takes a minimum of 1 to 2 months to authorize the financing and deliver the money. Due to the fact the home owners want a fast closing, that does not appear like a great idea to you whatsoever.
To add to it, banks have already been tightening up their lending standards in recent years, making it challenging for people to obtain an ordinary loan if their credit rating is not perfect or he doesn't have a regular salaried job. So will a shortage of funds stop you from following your ambitions? Absolutely not, because you also have the Plainfield, Connecticut hard money loan option.
A hard money home loan in Plainfield gives you what is probably most desired by real estate investors — a fast closing in as few as a few weeks. Aside from that, loans are made up to 70% loan-to-value of the as-is home's valuation, as deemed by a qualified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as more pricey than bank lending options. But the time frames of these loans tend to be quite shorter, making the rate far less significant. The price tag on such short-term loans ought to be considered on par with any other cost that you would have to meet pertaining to the project. And when you have sold the property or home, recovering this expense is identical to recovering the expense for all the kitchen and bath updates you did.
Apart from this, hard money mortgages are easy qualifying, even if you posses bad credit. As an alternative for focusing strictly on the person's credit score or net income, Plainfield hard money lenders, who can be a private company or an individual person, say yes to a loan as a result of examining the home value, its marketability, where it is located, and the likelihood of getting back their money in the event of foreclosure. How much of their own money a borrower can put down in advance towards the property or home, his past real estate experience, and price range of comparable properties in the area are other factors that go into establishing an individual's qualification for a hard money real estate loan.
Locating a hard money lender in Plainfield to fund your real estate project is not very challenging, provided that the opportunity that lies ahead of you is promising and has the right potential for returns. Fill out the form or give us a call to discuss your property.
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