A fantastic deal on a fix and flip property located in a nice subdivision suddenly turns up — sounds too good to be true. Everyone knows that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can turn an average profit margin of forty to fifty thousand dollars when they rehab properties. Of course, you also realize that their great results can be credited to the fact that they are professionals, are well versed in hard money loans, they know the marketplace really well and in addition, they are good at working an auction for getting a reasonable price. However, you're assured that your superb rehab and remodeling talents will enable you to do a quality job for this property — furthermore, you've already arranged to have one of the premier building contractors in town to take on this project.

But capital can be a different issue altogether. When you approach a standard lending institution, such as a bank for funding, it is in all likelihood going to take at least four to eight weeks for the acceptance to be completed and the money to be furnished. Because most sellers would prefer a fast closing, you may want to start looking for other funding options.

What's more, in case you have a less-than-perfect credit score or do not receive a conventional source of income, it may be more challenging to qualify for a bank loan, seeing the tighter loan criteria banks have put in place lately. So should you admit defeat and forego your ambition to venture into real estate? Absolutely not, given that you also have the Stoughton, Massachusetts hard money loan alternative.

A hard money home loan in Stoughton provides you with what is probably most crucial to real estate investors — a very fast closing time of as few as a few weeks. Plus, the LTV value can reach up to 70% of the property's valuation, as evaluated by a credentialed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be higher priced than bank financing. But when you understand these loans are not long-term loans, the interest rate tends to be misleading. Short-term loans of a couple months to a few years are best approached in terms of cost of capital, much like all other expenses in connection with a project. And when you've sold the home, recovering this expense is comparable to recovering the expense for the kitchen and bath updates you did.

Additionally, it's easy to qualify for a hard money mortgage, even in the event your credit rating is not that great. Stoughton hard money lenders don't authorize a loan exclusively judging by the applicant's credit score — instead they will evaluate the property or home, its valuation and location, and the property's capability to pay back the financing without the assistance of the applicant. Additional factors that impact a borrower's approval for a hard money real estate loan include how much money he is able to put into a down payment, his prior experience as a real estate investor, and price of comparable, recently sold properties nearby.

Finding a hard money lender in Stoughton to finance your real estate project is not difficult, so long as the opportunity that lies ahead of you is promising and boasts the right potential for returns. Complete the form on this page or get in touch with us via phone to talk about the property you have in mind.