Imagine you've encountered this excellent bargain for a fix and flip property located in a terrific location, and you happen to be either a seasoned real estate investor or a newbie who wants to try out flipping homes. You've heard that competent home flippers, such as the couple on HGTV's Flip or Flop, enjoy an impressive average profit margin close to $40,000 – $50,000. And yes, they are aided in a major way via their professional experience, auction expertise and knowledge of hard money loans. Nonetheless, your rehab and renovation skills aren't that bad either — in any case, you've already found the right contractor to start this home.

But funding can be a different problem altogether. When you get in touch with a customary lender, such as a bank for a mortgage loan, it is likely going to take at least four to eight weeks for the approval to come through and your funds to be given out. So if you happen to be anticipating a fast closing, it is important you be aware that this could set you back by weeks, causing you to lose out on the house.

With banks bringing in tougher loan criteria in the past several years, it is tougher for a self-employed person to get a home loan, especially when his credit rating is not optimal. So does that mean you are without an option, but to drop your aspiration to venture into the fix and flip business? Never, considering that you could always go the Lowell hard money loan route to fund your flipping project.

A hard money home loan in Lowell gives you what's possibly most sought after by real estate investors — a very fast closing in as little as 14 days. Furthermore, hard money lenders frequently agree to loans up to 70% LTV of the property or home's valuation, as estimated by a qualified third-party evaluation. A number of people regard hard money real estate loans to be higher priced than standard loans, because the interest rates for these loans commonly start out at 10%. But usually, the interest rate isn't as relevant for these loans, since they will never be long-term loans. When it comes to short-term loans of a handful of years or even less, you should think about them just like you would other expenditures for your project. And as soon as you have flipped the home, recovering this expense is the exact same as recouping the expense for all the bathroom or other upgrades you performed.

Aside from that, hard money mortgages are not difficult to qualify for, whether or not you posses a bad credit rating. The customer's credit score is not the single deciding factor for Lowell hard money lenders — they also examine the piece of real estate, its market valuation, its location, and its capacity to earn back their investment if things should not go as planned. How much of their own money an applicant can put down in advance for the property or home, how much practical experience he has in real estate investing, and selling price of equivalent properties in the area are other factors that go into analyzing a person's eligibility for a hard money real estate loan.

If you happen to have stumbled upon an excellent real estate opportunity with a high probability of returns, you've also found yourself a hard money lender in Lowell who's happy to provide funding for your fix and flip projects. Complete the contact form on this page or give us a call and let's discuss your property or properties.