Imagine you've run across this truly good bargain for a fix and flip property in a great location, and you happen to be either an experienced real estate investor or a newbie who hopes to try his hand at flipping. Everyone knows that skilled professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can earn an average profit margin of forty to fifty thousand dollars on their flips. And without a doubt, they are aided in a big way due to their professional experience, auction skills and knowledge of hard money loans. Nonetheless, your rehab and renovation knowledge isn't that bad either — besides, you have already identified a suitable building contractor to tackle the project.

But capital is a separate question altogether. A standard lender, say for example a bank, takes a minimum of one to two months to approve the loan and provide the capital. With the sellers wanting a fast closing, that doesn't appear like a good idea to you whatsoever.

With banks introducing harder loan requirements in the past few years, it has become more challenging for a self-employed person to get a mortgage loan, especially if his credit circumstances are not perfect. So does that leave you with no other option, but to drop your ambition of getting into home flipping? By no means, due to the fact you can always go the Litchfield, Connecticut hard money loan route to fund your home flipping project.

A hard money home loan in Litchfield offers what is deemed crucial to many real estate sales — a quick closing of just a few weeks and at many times even less. Further, loans can be done for up to 70% loan-to-value of the as-is value, as deemed by a licensed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as costlier than bank lending products. But in reality, the interest rate is not as useful a measure for these loans, since they will never be long-term loans. The price tag on such short-term loans should be looked at on par with any other cost that you might encounter in the course of the project. And once you have finally flipped the house, recouping this expense is identical to recuperating the expense for all the bathroom upgrades you performed.

Besides, hard money mortgages are not hard to qualify for, whether or not you have bad credit. The applicant's credit score isn't the lone determining factor for Litchfield hard money lenders — in addition, they examine the property, what is it valued at, where it is located, and its capability to earn back their investment if things should not go as planned. The total amount that an individual can put down beforehand for the property, how much experience he has in real estate investing, and price range of comparable homes in the same area are various other factors that go into establishing a person's qualification for a hard money real estate loan.

Searching for a hard money lender in Litchfield to fund your fix and flip endeavor is not difficult, provided that the opportunity that lies before you is promising and boasts the right potential for returns. Submit the contact form or give us a call to discuss the property or properties you have in mind.