Suppose you've stumbled upon this truly good bargain for a fix and flip property in an ideal neighborhood, and you are either a seasoned real estate investor or a first-timer who is looking to try out flipping homes. Most folks know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, are able to make an average profit margin of forty to fifty thousand dollars when they flip properties. Naturally, you also understand that their successes can be attributed to the fact that they're experts, are proficient in hard money loans, they understand the market quite well and additionally, they know how to work an auction to buy their homes at a reasonable price. Nevertheless, you are assured that your first class rehab and remodeling talents can help you do a quality job for this house — in addition, you've already lined up one of the premier contractors in town to handle this project.

But where can real estate investors find money? A standard lender, for instance a bank, takes no less than 1-2 months to authorize the financing and hand over the money. Because most sellers prefer a fast closing, you might need to begin searching for additional financing options.

Moreover, in case you have an unfavorable credit situation or do not have a routine source of income, it is usually harder for you to qualify for bank financing, with the tougher loan requirements banks have introduced in recent times. So do you have to admit defeat and abandon your dream to venture off into the real estate market? By no means, on the grounds that you could always use the Mendon, Massachusetts hard money loan approach to fund your home renovating project.

If you should get a hard money home loan in Mendon, you're going to get what is perhaps most important to real estate offers throughout the country — a very fast closing of around 2 weeks. And additionally, loans are made up to 70% loan-to-value of the "as is" house's valuation, as determined by a licensed appraiser. With loan rates starting off around 10%, hard money real estate loans may look, at first, to be higher in price when compared with traditional bank lending products. But when you understand these loans are not long-term home loans, the interest rate tends to be misleading. Short-term loans of a couple of months to a few years are best understood as cost of capital, similar to every other financial outlay associated with a project. And as soon as you've turned the property or home, recovering this expense is identical to recovering the expense for the bathroom or other upgrades you performed.

In addition, even an individual with bad credit can still be eligible for a hard money mortgage. Mendon hard money lenders don't approve a loan solely judging by the borrower's credit score — instead they also assess the home, its value and location, and the property's capacity to pay back the loan by itself. How much an applicant can put upfront towards the property, how much practical experience he has in real estate investments, and price range of equivalent homes in the same neighborhood are additional factors that go into determining an applicant's qualification for a hard money real estate loan.

Finding a hard money lender in Mendon to finance your real estate project is not hard, provided that the opportunity in front of you is promising and possesses a good prospect for returns. Submit the form or call us and let's discuss the property you have in mind.