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There's this outstanding possibility for renovating and flipping this nice outdated property or home in a good location and it seems like the deal you've been wanting for quite some time. You may have heard that competent home flippers, similar to the husband and wife on HGTV's Flip or Flop, turn an impressive average profit close to forty to fifty thousand dollars. Naturally, you also understand that their great results can be attributed to the fact that they're experts, are proficient in hard money loans, they know the marketplace really well and in addition, they are good at working a public auction to buy their houses at an appropriate deal. That said, you've also been developing your rehab and remodeling knowledge, have a licensed contractor arranged and are positive that you can do an impressive job for this house.
But where can you get the necessary capital for flipping? In the event you apply for a regular loan from the bank, you will wind up waiting around approximately one to two months before the mortgage loan is authorized and the funding is ready. Since the majority of sellers prefer a fast closing, you may have to begin searching for other funding alternatives.
With banks bringing in tougher loan requirements in the last few years, it is much harder for a self-employed person to get a home loan, especially when his credit circumstances are not perfect. So does that leave you with no other option, but to give up your aspiration to venture into the fix and flip business? Absolutely not, because you always have the Massachusetts hard money loan alternative.
A hard money home loan in Massachusetts can provide what's regarded as crucial to most real estate sales — a very fast closing of only a 2-3 weeks and sometimes less. In addition, the LTV value can range up to 70% of the property value, as evaluated by a certified appraiser. Some people regard hard money real estate loans to be higher in price than regular loans, because the lending rates for these loans often start off at 10%. But if you appreciate that these loans are not long-term home loans, the rate may be misleading. The price of such short-term loans should be considered much like every other cost that you will encounter during the project. And as soon as you have turned the property, recovering this expense is comparable to recuperating the expense for all the kitchen and bath upgrades you did.
Besides, hard money mortgages are not hard to qualify for, even if you posses poor credit. Massachusetts hard money lenders don't approve a loan solely judging by the customer's credit score — rather they also assess the property, where it is located and what it is worth, and the property's ability to pay back the financing without the assistance of the applicant. Several other criteria that influence a borrower's approval for a hard money real estate loan can include what amount of money he can put into a down payment, his former experience as a real estate investor, and price of similar, recently sold residences in the area.
So should you run into an outstanding and worthwhile investment opportunity, relax knowing you will have a hard money lender in Massachusetts, prepared to lend you the cash that you need. Submit the contact form on this page or get in touch with us via phone to discuss your property or properties.
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