Hard Money Loans in Skowhegan

An outstanding deal on a fix and flip property located in an excellent neighborhood shows up out of the blue — seems too good to be true. Professional property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a profit of forty to fifty grand on a consistent basis. It goes without saying their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction talents have had a big part in their successes. With that being said, you've likewise been cultivating your rehab and remodeling knowledge, have got a general contractor arranged and are positive that you're capable of doing a bang up job on this home.

But capital is a different question entirely. If you apply for a traditional loan from the bank, you will end up waiting around approximately 30-60 days until the loan is authorized and your money is ready. Because most sellers favor a fast closing, you may have to start looking for other financing alternatives.

Furthermore, if you have an unfavorable credit rating or don't have a consistent income source, it is normally more difficult for you to qualify for bank financing, considering the more stringent loan guidelines banks have introduced lately. So will a lack of funding prevent you from sticking with your aspirations? Never, on the grounds that you can always use the Skowhegan hard money loan approach to finance your home renovating project.

If you should opt for a hard money home loan in Skowhegan, you have access to what's possibly most vital to real estate transactions throughout the country — a quick closing of roughly a couple weeks. Additionally, financing can be made up to 70% loan-to-value of the as-is valuation, as deemed by a qualified appraiser. Some people regard hard money real estate loans to be more expensive than customary loans, considering interest rates for such loans often start off at 10%. But usually, the interest rate isn't as useful a measure for these loans, given that they will never be long-term financing. As it pertains to short-term loans of a handful of years or even less, you should think about them just like you would other expenditures for the project. And as soon as you have turned the property or home, recovering this expense is identical to recouping the expense for all the bathroom updates you did.

What's more, it isn't difficult to obtain a hard money mortgage, even if your credit score is not that superb. Skowhegan hard money lenders don't approve a loan solely based on the applicant's credit score — instead they will analyze the home, its location and value, and the property's capacity to pay back the financing without the assistance of the applicant. The amount that a borrower can put upfront for the property or home, how much practical experience he has in real estate investments, and price range of comparable homes in the same vicinity are various other factors that go into analyzing an individual's suitability for a hard money real estate loan.

Searching for a hard money lender in Skowhegan to fund your real estate project is not difficult, as long as the opportunity in front of you is promising and offers a good prospect for returns. Fill out the form on this page or call us and let's talk about the project you have in mind.

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