Suppose that you've encountered this truly good bargain for a fix and flip property located in a terrific neighborhood, and you're either a skilled real estate investor or a first-timer who wants to try out flipping houses. You may have heard that professional home flippers, similar to the married couple on HGTV's Flip or Flop, enjoy an impressive average profit margin of around $40,000 – $50,000. Naturally, you also know that their success can be credited to the simple fact that they're professionals, are proficient in hard money loans, they understand the marketplace quite well and additionally, they know how to work an auction to buy their properties at a good price. Nevertheless, you're convinced that your impressive rehab and renovation skills can help you do an outstanding job on the project — what's more, you've already arranged to have one of the most suggested contractors in town to work on the job.

But capital is usually a different problem altogether. A typical lending institution, like for example a bank, takes a minimum of 1 to 2 months to approve the financing and hand over the funds. So if you're hoping for a fast closing, you have to understand or know that this will cost you a few weeks, causing you to lose out on the opportunity.

With banks establishing harder loan guidelines in recent times, it is much harder for a self-employed person to find a mortgage loan, particularly if his credit situation is not optimal. So will inadequate financing prevent you from pursuing your ambitions? Certainly not, given that you also have the Northbridge, Massachusetts hard money loan alternative.

If you get a hard money home loan in Northbridge, you will get what's probably most essential to real estate offers across the country — a fast closing of around a couple weeks. Furthermore, hard money lenders frequently agree to funding up to 70% LTV of the property value, as identified by a qualified third-party appraiser. A number of people believe hard money real estate loans to be costlier than standard loans, because the interest rates of such loans often start at 10%. But once you appreciate that these are not long-term loans, the interest rate tends to be misleading. The cost of such short-term loans should be looked at on par with any other expenditure that you might encounter during the project. And when you've finally sold the property, recuperating this expense is comparable to recuperating the expense for the bathroom or other updates you performed.

In addition, even someone with bad credit will be able to qualify for a hard money mortgage. Northbridge hard money lenders do not approve a loan solely judging by the borrower's credit score — rather they also examine the home, where it is located and how much it is worth, and the property's capability to pay back the financing by itself. Adding to that, if the borrower can demonstrate past experience in comparable real estate projects, can put down money towards the down payment, and the price of comparative properties in the vicinity works in his favor, he has a very good shot of being eligible for a hard money real estate loan.

So any time you come across a very good and lucrative flipping opportunity, feel comfortable knowing you'll have a hard money lender in Northbridge, ready to lend you the cash you may need. Fill out the form or get in touch with us via phone to discuss the property or properties you have in mind.