I meet a lot of people in this business, but some of them are so special you never forget them. I met Aimee at a Yoga class in Portland’s East End. She was recovering from a bad bout of sciatica, but she wasn’t letting it stop her from doing what she loved. We became friends and soon I learned just how determined she really was. A software developer of 16 years, Aimee was burnt out working in a field where her coworkers seemed to get younger and younger. She wanted to become a real estate investor and, finally, be her own boss.
As capable as Aimee was, even she had some doubts. She wanted to buy a house to rehab and sell in her neighborhood in Parkside. But where could she find trustworthy funding? As a veteran real estate investor myself, I had a long talk with Aimee and explained the ins and outs of finding hard money lenders in Maine.
When Searching for Hard Money Lenders in Maine, Know Your Options
The investment house she wanted was a fixer-upper and she’d struck a great deal, but she needed to get the funding quickly before someone else snatched it up. This is a common challenge for new investors, especially when they are competing for a good deal on a property against more experienced investors who already have funding resources lined up. But, even if you haven’t spent years lining up funding relationships, you can still get the investment money you need quickly. That’s why I told Aimee about some of the best hard money lenders in Maine that I’ve worked with—and who are glad to work with newer investors as well.
Sherman Bridge Lending
Sherman Bridge Lending offers hard money loans for just about any good deal you can find. You can borrow loans up to 85% of a home’s purchase price, or 70% of the After Repair Value (ARV). And, they have flexible options that can help a first-time investor, such as a 30-year loan option that requires no extension requests or prepayment penalty, which is helpful if your first project isn’t as successful as you had planned or you’ve decided to hold the property as a rental. They have fast approval times, too, and may be able to approve your application in as little as one day. This is great if you’re competing with other investors to buy a hot property fast.
Their approval and terms are not big stumbling blocks, either. You’ll need to have a few liquid assets on hand and your credit score must be at least 600. Their interest rates, terms and lender fees will vary according to your rehab experience, cash reserves, and credit score. But, as time goes on and you’ve successfully sold more homes, you should be able to qualify for better rates. All in all, Sherman Bridge Lending is a good choice for a new investor.
Finance of America
Finance of America is a nationwide hard money lender that offers “fix-and-flip loans” for up to 75% of a property’s ARV. These loans can start as low as $50,000 and you’ll have a 12-month or longer repayment period. This allows you more than the typical time period of other lenders while you learn the ropes of performing a rehab. Pay it off early, however, and you won’t be charged a prepayment penalty.
What I like best about Finance of America is that you deal with experienced account representatives. They can walk you through the process of funding your investment property from start to finish and are available to answer any of your questions. This kind of detail-oriented help makes a world of difference for new investors.
Whether you are looking for hard money in Maine, or anywhere else for that matter, you can get a loan from RCN Capital. They can lend up to 90% of the purchase price, and even 100% of renovation costs that don’t exceed 75% of your ARV. The terms last 12 months with an interest rate as low as 7.99%. And, six-month extensions are available if you need it but, like the other hard money lenders I’ve mentioned, you won’t face a penalty for paying your loan off quickly.
The specific terms of your loan will be based upon the specifics of the collateral property, as well as on your investment record. They have three loan programs based on these measures, so you’re sure to find one that fits your needs. This all makes RCN Capital is another good choice worth checking out.
It can take a lot of time to get to know your resources for finding a hard money lender in Maine, and even longer to understand the terms that each might offer for your specific investment deal. I knew Aimee was a little overwhelmed by it all, so I offered another suggestion to make it all easier.
Find the Best Hard Money Lender in Maine From a Trusted Source
As an independently owned and operated HomeVestors® franchisee, I don’t have to hassle with seeking out hard money lenders willing to fund my deals—some of the best come to me. In fact, they even compete for my business. All I have to do is input a few details about the specific property into HomeVestors’ proprietary software then sit back and wait for the loan offers to roll in. It’s that easy.
Whether you’re brand new, like Aimee, or have been a professional investor for years, like me, you’re going to need more than a little Yankee ingenuity to reach your real estate investment goals here in Maine. Call HomeVestors to learn how you can get the hard money lenders you need to fund your investment deals.
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