Suppose that you've come across this truly good deal on a fix and flip property located in a terrific location, and you are either a seasoned real estate investor or a first-timer who hopes to try his hand at flipping. Expert residential home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are able to generate a profit of forty to fifty grand on a consistent basis. It's fair to say their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction skills have been major factors to their results. On the other hand, you're assured that your impressive rehab and renovation knowledge will help you do an outstanding job for this project — in addition, you have already arranged to have one of the best contractors in the area to take on the project.

But money is a separate question altogether. A conventional lending institution, say for example a bank, takes a minimum of one to two months to approve the financing and hand over the money. Given that home owners would prefer a fast closing, it may be advisable to start looking for additional funding options.

With banks establishing tougher loan standards in the last few years, it is now more difficult for a self-employed person to get a mortgage loan, particularly if his credit score is not flawless. So does that mean you have no option, but to give up your ambition to venture into flipping? Certainly not, seeing as you also have the Northampton hard money loan alternative.

If you decide to put in an application for a hard money home loan in Northampton, you will get what's probably most essential to real estate transactions across the country — a quick closing of around 14 days. Furthermore, hard money lenders are able to do lending up to 70% LTV of the property value, as assessed by a credentialed third-party evaluation. Some people regard hard money real estate loans to be more costly than ordinary financing, considering lending rates of such loans usually start off at 10%. But usually, the lending rate is not as relevant for these loans, simply because they will never be long-term financing. When it comes to short-term loans of a few years or even less, you should look at them identical to any other expense for your project. Once you have sold the house and have made a good gain, you can reclaim this expense from the house — similar to recouping the cost of brand-new appliances for the kitchen that you've put in.

Aside from that, hard money mortgages are easy qualifying, even if you posses bad credit. The customer's credit score will not be the sole determining factor for Northampton hard money lenders — in addition, they analyze the piece of real estate, how much it is worth, where it is located, and its capacity to bring back their financial commitment if everything does not work out as planned. How much an individual can put upfront towards the house, how much experience he has in real estate investments, and price range of equivalent homes in the same vicinity are other details that go into ascertaining a person's qualification for a hard money real estate loan.

So if you have stumbled on a really great fixer-upper with a significant probability of returns, you've also stumbled upon a hard money lender in Northampton that's prepared to provide funding for your fix and flip venture. Enter your info into the form or get in touch with us via phone to discuss your property or properties.