Suppose you've encountered this truly good deal on a fix and flip property in an ideal location, and you are either a skilled real estate investor or a newbie who wants to try his hand at flipping. Expert house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to generate a profit of $40-$50k on average. Naturally, you also understand that their results are credited to the simple fact that they're experts, are knowledgeable in hard money loans, they understand the marketplace really well and furthermore, they are good at working an auction to purchase their houses at an appropriate deal. Nonetheless, your rehab and remodeling skills aren't that bad either — besides, you've already identified a suitable licensed contractor to take on the home.

But where can you obtain the needed financing for flipping? A conventional lending institution, say for example a bank, takes at the very least one to two months to approve the loan and release the capital. Thus if you happen to be looking for a fast closing, it's important for you to recognize that this could cost you a couple weeks, making you miss out on the sale.

To add to it, banks have been tightening up their lending requirements as of late, rendering it more hard for a person to receive a traditional loan if their credit situation is not perfect or he does not possess a regular salaried job. So do you have to give up and abandon your desire to venture off into the real estate market? Absolutely not, given that you always have the Mansfield, Connecticut hard money loan alternative.

A hard money home loan in Mansfield promises what is probably most important to real estate investors — a fast closing in as few as a few weeks. Furthermore, hard money lenders are able to do loans up to 70% LTV of the property or home value, as determined by a certified third-party appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as costlier than bank lending options. But the lengths of these loans tend to be relatively short, which makes the interest rate much less significant. Short-term loans of a couple of months to a few years are best understood as cost of capital, similar to any other expense in connection with a project. Right after you remodel and unload the property, recovering this expense is the same as recouping the cost of the new kitchen appliances you put in the property.

What's more, it is easy to obtain a hard money mortgage, even in the event your credit score is not that superb. Mansfield hard money lenders don't authorize a loan strictly judging by the borrower's credit score — instead they additionally examine the property, its location and value, and the home's ability to pay back the financing independent of the borrower. Several other factors that affect a borrower's acceptance for a hard money real estate loan can include the amount he is in a position to put towards a down payment, his prior experience being a real estate investor, and selling price of comparable, fairly recently sold residences nearby.

So any time you run into a very good and lucrative investment opportunity, rest assured you will have a hard money lender in Mansfield, equipped to lend you the capital you need. Complete the contact form on this page or get in touch with us via phone and let's discuss the project you have in mind.