Hard Money Loans in Fairfield

Imagine you've encountered this truly good bargain on a fix and flip property you found in a great location, and you're either a seasoned real estate investor or a first-timer who wants to try out flipping houses. You've heard that veteran house flippers, such as the married couple on HGTV's Flip or Flop, enjoy an impressive average profit close to $40,000 – $50,000. And indeed, they are aided in a major way via their professional know-how, auction expertise and familiarity with hard money loans. That said, you have likewise been developing your rehab and remodeling skills, have a contractor ready for the project and are confident that you're capable of doing a great job for this house.

But funding can be a different question altogether. When you opt for a traditional loan from the bank, you will end up waiting around roughly 30-60 days until eventually the loan is approved and your money is accessible. With the sellers looking for a fast closing, that doesn't appear to be a wise idea to you at all.

On top of this, banks have already been tightening up their lending requirements in recent times, making it challenging for a person to receive a typical home loan if their credit score is not flawless or he does not possess a regular salaried occupation. So should you stop trying and forego your dream to embark into real estate? Most certainly not, seeing as you always have the hard money loan option.

A hard money home loan in gives you what is deemed essential to most real estate deals — a very fast closing of just a couple of weeks and at times even less. Besides that, hard money lenders are able to do loans up to 70% LTV of the home's valuation, as calculated by a professional third-party appraiser. A number of people believe hard money real estate loans to be more expensive than standard loans, considering interest rates for such loans typically start at 10%. But usually, the rate of interest is not as relevant for these loans, simply because they are not long-term loans. When it comes to short-term loans of a handful of years or less, you should consider them similar to any other expense for the project. Once you have turned the property or home and have made a successful gain, you're able to recover this expense from the home — similar to recouping the money spent on the brand-new kitchen appliances that you have put in.

In addition, even an individual with poor credit can still qualify for a hard money mortgage. As an alternative for focusing exclusively on the person's credit score or income, hard money lenders, who could be a private company or an individual person, authorize a loan after analyzing the home value, its salability, its location, and the probability of getting back their capital in the event of foreclosure. The total amount that a borrower can put down in advance towards the property, how much practical experience he has in real estate investing, and price range of comparative properties in the neighborhood are additional factors that go into ascertaining a person's eligibility for a hard money real estate loan.

If you happen to have found an excellent fixer-upper with a huge potential for returns, you've also found yourself a hard money lender in who's prepared to provide financing for your rehab projects. Submit the contact form on this page or get in touch with us via phone to talk about your project.

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Investment property loans only please, no primary residences at this time.