You discovered this amazing opportunity to rehab and flip this wonderful out of date house in a very good part of town and it seems a lot like the deal you've been eagerly waiting on for a long time. You've heard that veteran home flippers, like the husband and wife on HGTV's Flip or Flop, have an impressive average profit of around forty to fifty thousand dollars. And sure, they are helped in a major way due to their professional knowledge, auction abilities and familiarity with hard money loans. Nevertheless, you're convinced that your superb rehab and renovation talents will assist you to do a great job for this project — furthermore, you've already lined up one of the best contractors in the area to handle the job.

But how exactly do real estate investors find capital? Should you opt for an ordinary loan via a bank, you will end up waiting roughly 1-2 months up until the financing is approved and the money is accessible. Considering that the home owners want a fast closing, that does not appear like a great idea to you at all.

With banks bringing in more challenging loan criteria in recent times, it has become tougher for a self-employed person to get a mortgage loan, particularly if his credit score is not optimal. So must you give up and abandon your aspiration to venture off into real estate? By no means, due to the fact you can always use the Lexington, Massachusetts hard money loan approach to fund your flipping project.

A hard money home loan in Lexington can provide what's viewed as crucial to most real estate deals — a very fast closing of only a 2-3 weeks and oftentimes even less. In addition, the LTV value can range up to 70% of the home value, as determined by a certified appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as higher priced than bank lending options. But the term lengths for these loans tend to be relatively shorter, which means the interest rate is much less significant. Short-term loans of several months to a handful of years are best approached as cost of capital, the same as every other expenditure involved with a project. And as soon as you've turned the property or home, recovering this expense is comparable to recouping the expense for the kitchen and bath upgrades you did.

Moreover, even individuals with poor credit will be able to qualify for a hard money mortgage. Lexington hard money lenders do not take on a loan solely on the basis of the person's credit score — rather they will assess the property, its location and value, and the property's capacity to pay back the loan without the assistance of the applicant. On top of this, if the applicant have proven experience in equivalent real estate projects, can put down cash towards the down payment, and the value of comparative homes in the area works to his benefit, he has a very good likelihood of being eligible to get a hard money real estate loan.

So in case you have stumbled on a really great real estate opportunity with a significant prospect of returns, you have also found yourself a hard money lender in Lexington who is happy to fund your flipping projects. Fill out the contact form on this page or call us to discuss your project.