Imagine you've come across this excellent deal on a fix and flip property in an ideal location, and you're either a seasoned real estate investor or a first-timer who is looking to try his hand at flipping. Many people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping program, Fix or Flop, can readily turn an average profit of forty to fifty thousand dollars in their rehab business. And without a doubt, they are helped in a major way via their professional experience, auction expertise and understanding of hard money loans. That said, you've recently been cultivating your rehab and renovation knowledge, have a contractor ready for the project and are confident that you can do a bang up job on this property.

But where do you get the needed capital for home flipping? A conventional lending institution, for instance a bank, takes at the very least 1 to 2 months to approve the mortgage and hand over the money. With all the sellers wanting a fast closing, that does not seem like a good option to you whatsoever.

With banks establishing more challenging loan guidelines in recent times, it's become more difficult for a self-employed person to find a home loan, particularly if his credit score is not optimal. So does this leave you with no other option, but to give up your dream to venture into flipping? Never, because you can always go the Londonderry hard money loan route to pay for your rehab project.

A hard money home loan in Londonderry offers you what is regarded as vital to many real estate transactions — a quick closing of just a couple of weeks and sometimes even less. Also, hard money lenders can approve loans up to 70% LTV of the property value, as determined by a credentialed third-party evaluator. Some people believe hard money real estate loans to be costlier than customary financing, considering interest rates for these loans ordinarily start out at 10%. But the time frames of these loans tend to be much shorter, which makes the interest rate much less important. Short-term loans of a couple months to a handful of years are best thought of in terms of cost of capital, the same as every other expense in connection with a project. And once you have turned the home, recouping this expense is the exact same as recouping the expense for all the kitchen and bath upgrades you did.

Furthermore, even individuals with poor credit will be able to qualify for a hard money mortgage. Londonderry hard money lenders don't authorize a loan exclusively according to the applicant's credit score — instead they will evaluate the property or home, its value and location, and the home's capability to pay back the loan on its own. Adding to this, if the individual can demonstrate prior experience in comparable real estate endeavors, can put down money towards the down payment, and the value of similar houses in the neighborhood works in his favor, he has got an excellent likelihood of qualifying for a hard money real estate loan.

Finding a hard money lender in Londonderry to fund your real estate project is not difficult, as long as the opportunity before you is promising and possesses a good potential for returns. Fill out the contact form on this page or call us and let's talk about the property you have in mind.