An outstanding deal on a fix and flip opportunity located in an excellent neighborhood shows up out of the blue — sounds so good that it's hard to believe. Professional house flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of generating a profit of $40-$50k on the majority of projects. And sure, they are aided in a big way as a result of their professional know-how, auction expertise and familiarity with hard money loans. Still, your rehab and remodeling knowledge isn't bad either — aside from that, you've already identified a suitable licensed contractor to start the home.

But funding is often a separate issue altogether. For those who go after an ordinary bank loan, you will have to wait around somewhere around one to two months up until the financing is approved and your funds are available. So if you will be expecting a fast closing, you have to recognize that this will cost you a couple of weeks, causing you to miss out on the house.

As well as this, if you have an unfavorable credit situation or don't receive a regular income source, it usually is more difficult to be eligible for a bank financing, seeing the more stringent loan requirements banks have issued as of late. So will a lack of financing prevent you from sticking with your ambitions? By no means, especially when New Milford, New Jersey hard money loans will assist you to realize many amazing things in the real estate market.

A hard money home loan in New Milford can provide what's viewed as vital to most real estate transactions — a very fast closing of only a 2-3 weeks and at times even less. Furthermore, hard money lenders are capable of doing funding up to 70% LTV of the property's valuation, as estimated by a licensed third-party appraiser. With the rates starting near 10%, hard money real estate loans may look, at first glance, to be more expensive as compared with conventional bank loans. But usually, the rate of interest isn't as useful a measure for these loans, simply because they aren't long-term loans. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, similar to all other expenses related to a project. After you remodel and sell off the house, recovering this expense is just like recuperating the expense for new kitchen appliances you put in the house.

What's more, it's easy to qualify for a hard money mortgage, even in the event your credit score is not that great. Instead of focusing strictly on the applicant's credit score or income, New Milford hard money lenders, who may be a privately owned company or an individual, approve a loan after analyzing the property value, how easy it will be to market, its location, and the possibility of recouping their money in the event of foreclosure. On top of this, if the individual have proven experience in similar real estate ventures, can place down cash towards a down payment, and the price of comparative houses in the area works to his benefit, he stands a really good shot of being approved to obtain a hard money real estate loan.

So any time you run into a really good and worthwhile flipping opportunity, rest assured you will have a hard money lender in New Milford, able to lend you the cash you need. Enter your info into the form or call us and let's discuss the property or properties you have in mind.