An incredible bargain on a fix and flip property located in an excellent subdivision suddenly turns up — seems so good that it is difficult to believe. Professional property flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of hauling in a profit of $40-$50k on average. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction talents have had a significant part in their success. That said, you have also been developing your rehab and remodeling knowledge, have got a building contractor ready to go and are confident that you're capable of doing a bang up job on this property.

But capital is usually a different issue altogether. In the event you go after an ordinary loan via a bank, you will wind up waiting approximately 1 to 2 months until eventually the mortgage loan is approved and the money is ready. So if you're expecting a fast closing, it is important to recognize that this could set you back by a few weeks, causing you to miss out on the sale.

With banks bringing in harder loan requirements in the past several years, it is more difficult for a self-employed individual to find a mortgage loan, especially if his credit rating is not flawless. So does that leave you with no option, but to abandon your ambition to venture into the fix and flip business? Under no circumstances, particularly while Wilmington, Massachusetts hard money loans enable you to achieve many amazing things in the real estate world.

A hard money home loan in Wilmington gives you what's considered imperative to many real estate deals — a fast closing of only a few weeks and oftentimes less. What's more, the LTV value can go up to 70% of the home value, as evaluated by a certified appraiser. A number of people regard hard money real estate loans to be higher priced than ordinary financing, because the interest rates for these loans typically start at 10%. But the time frames of these loans are rather short, making the rate much less important. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, much like every other financial outlay related to a project. And when you have finally sold the home, recuperating this expense is identical to recovering the expense for all the kitchen and bath upgrades you did.

Also, it's simple to obtain a hard money mortgage, even when your credit situation is not that impressive. The applicant's credit score will not be the exclusive determining factor for Wilmington hard money lenders — they also examine the property, how much it is worth, where it is located, and its capability to earn back their investment if things do not go as intended. How much a borrower can put down beforehand for the home, his real estate experience, and price range of comparable properties in the neighborhood are other details that go into ascertaining a person's qualification for a hard money real estate loan.

So any time you come across a very good and profitable investment opportunity, feel comfortable knowing you'll have a hard money lender in Wilmington, prepared to lend you the money you need. Submit the form or call us and let's discuss the property or properties you have in mind.