Suppose that you've run across this really great bargain on a fix and flip property you found in a great location, and you happen to be either an experienced real estate investor or a newbie who really wants to try out flipping homes. Everyone knows that capable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, can readily turn an average profit of $40,000 to $50,000 on their home projects. And without a doubt, they are aided in a big way by their professional experience, auction skills and familiarity with hard money loans. Nonetheless, your rehab and renovation skills aren't bad either — in any case, you have already identified a good building contractor to start this project.

But money is a different problem entirely. A conventional lender, for instance a bank, takes at a minimum 1 to 2 months to consent to the loan and provide the funds. Considering that all the sellers are wanting to find a fast closing, that does not appear to be a good idea to you whatsoever.

With banks introducing harder loan standards in the past several years, it is now more difficult for a self-employed individual to obtain a home loan, especially if his credit circumstances are not perfect. So do you have to give up and abandon your aspiration to get into the real estate market? Certainly not, seeing as you also have the Lenox, Massachusetts hard money loan alternative.

A hard money home loan in Lenox boasts what is probably most essential to real estate investors — a very fast closing time of as little as 2 weeks. Besides that, hard money lenders can do lending up to 70% LTV of the property or home's valuation, as calculated by a qualified third-party evaluator. At first, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank lending products. But when you understand these are not long-term loans, the rate can be misleading. When it comes to short-term loans of a few years or even less, you should look at them just like you would other expenditures for your project. Right after you remodel and sell the home, recouping this expense is just like recuperating the cost of the new kitchen appliances you put in the place.

Besides, hard money mortgages are easy qualifying, even when you have got a low credit score. Rather than focusing primarily on the applicant's credit score or income, Lenox hard money lenders, who could be a privately owned company or an individual person, authorize a loan as a result of analyzing the property value, its marketability, where it is located, and the likelihood of recuperating their capital should they have to foreclose the loan. Other variables that impact a person's eligibility for a hard money real estate loan include what amount of money he is in a position to put into a down payment, his prior experience being a real estate investor, and price range of comparable, recently sold properties in the neighborhood.

So should you come across a good and worthwhile investment opportunity, relax knowing you will have a hard money lender in Lenox, in a position to lend you the money you'll need. Fill out the form or give us a call and let's talk about your property.