A fabulous bargain on a fix and flip opportunity in a good subdivision suddenly turns up — sounds too good to be true. Expert house flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of hauling in a profit of $40-$50k as an average on multiple occasions. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction talents have been large factors to their success. Nevertheless, you are certain that your superb rehab and remodeling knowledge will enable you to do a great job on the house — what's more, you already have lined up one of the best general contractors in the business to take care of the project.

But where precisely do real estate investors find financing? For those who opt for a traditional bank loan, you will end up waiting around somewhere around 1-2 months up until the time the mortgage is authorized and the funding is readily available. Since the majority of home owners wish to have a fast closing, it may be advisable to start searching for additional funding options.

What's more, for those who have a less-than-perfect credit rating or do not have a conventional source of income, it is usually tougher for you to obtain bank financing, seeing the tougher loan criteria banks have issued recently. So does this mean you have no option, but to give up your ambition of venturing into home flipping? Not at all, particularly while Marlborough, Connecticut hard money loans will assist you to realize great things in real estate.

If you obtain a hard money home loan in Marlborough, you have access to what's perhaps most important to real estate negotiations across the country — a very fast closing of about a couple weeks. Further, loans can be made up to 70% loan-to-value of the as-is valuation, as calculated by a professional appraiser. With the rates starting out at about 10%, hard money real estate loans may look, at first, to be higher in price when compared with conventional bank financing. But once you understand these are not long-term mortgage loans, the rate tends to be misleading. When it comes to short-term loans of one or two years or less, you should think about them the same as you might for any other expense for your project. Right after you rehab and resell the home, recuperating this expense is just like recuperating the one for new kitchen appliances you put in the home.

Additionally, it is easy to qualify for a hard money mortgage, even when your credit rating is not that superb. Marlborough hard money lenders don't take on a loan strictly based on the applicant's credit score — instead they will assess the property, where it is located and what it is worth, and the property's ability to pay back the financing by itself. Other factors that influence an applicant's eligibility for a hard money real estate loan can include how much money he is able to put into a down payment, his past experience as a real estate investor, and selling price of comparable, just recently sold homes nearby.

So in case you have stumbled on a really great real estate opportunity with a huge prospect of returns, you have also stumbled upon a hard money lender in Marlborough that's happy to provide funding for your rehab projects. Enter your info into the form or get in touch with us via phone and let's discuss your project.