Hard Money Loans in Salem

Suppose that you've run across this really great bargain on a fix and flip property located in a terrific neighborhood, and you happen to be either a seasoned real estate investor or a newbie who hopes to try out flipping houses. You may have heard that competent home flippers, similar to the couple on HGTV's Flip or Flop, enjoy an impressive average return of around forty to fifty thousand dollars. And indeed, they are aided in a major way due to their professional knowledge, auction abilities and familiarity with hard money loans. Nonetheless, your rehab and remodeling skills aren't that bad either — aside from that, you have already identified an ideal contractor to tackle this project.

But how can you obtain the necessary capital for flipping? When you get in touch with a customary lending institution, such as a bank for financing, it's in all likelihood going to take, at the very least, four to eight weeks for the approval to come through and your money to be distributed. Since the majority of home owners would rather have a fast closing, you might want to start searching for some other funding alternatives.

With banks establishing harder loan requirements in the recent past, it has become much harder for a self-employed person to obtain a home loan, especially when his credit circumstances are not optimal. So do you have to give up and abandon your dream to venture off into fix and flips? Certainly not, seeing as you also have the Salem hard money loan alternative.

A hard money home loan in Salem gives you what's considered crucial to many real estate sales — a fast closing of just a 2-3 weeks and at many times less. And additionally, financing is made up to 70% loan-to-value of the as-is home value, as deemed by a qualified appraiser. At first, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank lending options. But once you understand these loans are not long-term mortgage loans, the rate of interest tends to be misleading. Short-term loans of a couple of months to a few years are best thought of as cost of capital, much like all other expenditures associated with a project. And as soon as you have flipped the house, recuperating this expense is identical to recovering the expense for the kitchen and bath upgrades you did.

In addition, even an individual with poor credit can easily be eligible for a hard money mortgage. The person's credit score isn't the sole deciding factor for Salem hard money lenders — they also consider the house, its market value, where it is located, and its capability to bring back their financial commitment if everything does not go as planned. Additional criteria that have an impact on a customer's eligibility for a hard money real estate loan can include how much he is in a position to put into a down payment, his former experience being a real estate investor, and price of comparable, fairly recently sold properties in the vicinity.

If you happen to have stumbled on a really great fixer-upper with a huge chance of returns, you have also discovered a hard money lender in Salem that's ready to finance your flipping ventures. Submit the contact form on this page or get in touch with us via phone to talk about your property.

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Investment property loans only please, no primary residences at this time.