Imagine you've come across this really great deal for a fix and flip property you found in a terrific neighborhood, and you happen to be either a seasoned real estate investor or a newbie who really wants to try his hand at flipping. Expert property flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to earn a gain of $40-$50k on most projects. Of course, you also know that their successes are due to the simple fact that they're professionals, are well versed in hard money loans, they know the marketplace quite well and in addition, they are good at working an auction to buy their properties at a good deal. That said, you have also been developing your rehab and remodeling skills, have a licensed contractor arranged and are confident that you will be able to do a bang up job on this home.

But how can real estate investors get funds? When you opt for a normal loan from the bank, you will have to wait around somewhere around 4-8 weeks until eventually the mortgage is authorized and your funds are accessible. With the sellers wanting a fast closing, that does not appear to be a wise idea to you in the slightest.

With banks introducing more challenging loan guidelines in the past few years, it is more challenging for a self-employed person to obtain a home loan, especially if his credit circumstances are not perfect. So does that mean you have no option, but to drop your ambition to venture into home renovating? Definitely not, because you also have the Stamford hard money loan option.

A hard money home loan in Stamford boasts what is perhaps most essential to real estate investors — a fast closing time period of as few as fourteen days. In addition, the LTV value can reach up to 70% of the property value, as estimated by a credentialed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank financing. But if you understand these are not long-term home loans, the rate can be misleading. As it pertains to short-term loans of several years or even less, you should think of them just like you would other expenses for your project. And as soon as you have flipped the property, recouping this expense is identical to recuperating the expense for all the bathroom upgrades you performed.

Additionally, it's simple to be eligible for a hard money mortgage, regardless of whether your credit score is not that great. The applicant's credit score isn't the primary determining factor for Stamford hard money lenders — they also consider the piece of real estate, its market value, its location, and its capability to earn back their investment if everything does not go as intended. Adding to this, if the applicant have proven experience in comparable real estate ventures, can put down cash towards the down payment, and the price of comparable properties in the neighborhood works in his favor, he has a really good chance of being approved for a hard money real estate loan.

So in case you have stumbled upon a wonderful fixer-upper with a huge prospect of returns, you've also found yourself a hard money lender in Stamford who's happy to provide financing for your fix and flip project. Fill out the contact form on this page or get in touch with us via phone to discuss the property or properties you have in mind.