You discovered this phenomenal opportunity to rehab and flip this wonderful old condo in a very good location and it seems like the deal you have been eagerly waiting on for quite some time. Expert house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a profit of forty to fifty grand on most projects. And yes, they are aided in a major way by their professional knowledge, auction expertise and understanding of hard money loans. Nonetheless, your rehab and remodeling skills aren't bad either — besides, you have already found the right licensed contractor to take on the home.

But how do real estate investors obtain capital? In the event you apply for a regular loan via a bank, you will end up waiting roughly 1-2 months until eventually the money is approved and your money is ready. So if you are looking for a fast closing, you must understand or know that this will set you back by a couple weeks, causing you to miss out on the sale.

On top of this, banks have already been tightening up their lending standards in recent times, which makes it hard for people to receive a typical home loan if their credit rating is not perfect or he is lacking a regular salaried job. So do you have to give up and abandon your ambition to venture off into the real estate market? Most certainly not, seeing as you also have the Old Saybrook, Connecticut hard money loan option.

A hard money home loan in Old Saybrook provides what's perhaps most crucial to real estate investors — a very fast closing time period of as little as 2 weeks. In addition, the LTV value can reach up to 70% of the property value, as determined by a competent appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as costlier than bank loans. But when you appreciate that these are not long-term home loans, the interest rate can be misleading. Short-term loans of a couple months to a few years are best understood as cost of capital, similar to any other expenditure associated with a project. And as soon as you have sold the property or home, recovering this expense is comparable to recovering the expense for the bathroom updates you performed.

Aside from that, hard money mortgages are not difficult to qualify for, whether or not you have a low credit score. Instead of focusing primarily on the applicant's credit score or source of income, Old Saybrook hard money lenders, who may be a privately owned company or an individual, say yes to a loan after examining the home value, ease of marketability, where it is located, and the odds of recovering their capital in the event of foreclosure. Adding to this, if the person have proven experience in equivalent real estate ventures, can put down cash towards the down payment, and the price of comparative properties in the vicinity works in his favor, he stands a good chance of being approved for a hard money real estate loan.

So any time you run into a really good and profitable flipping opportunity, be assured you will have a hard money lender in Old Saybrook, ready to loan you the capital you will need. Enter your info into the form on this page or get in touch with us via phone to talk about your property or properties.