There is this phenomenal opportunity to fix and flip this wonderful outdated property or home in a very good area and it looks like the one you've been expecting for a long time. You've heard that veteran property flippers, much like the couple on HGTV's Flip or Flop, turn an impressive average profit margin near $40,000 – $50,000. No need to explain that their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction talents have been major factors to their successes. Still, your rehab and renovation knowledge isn't bad either — in any case, you've already identified the right contractor to handle this home.

But how can real estate investors find financing? When you opt for a conventional bank loan, you will need to wait somewhere around 4-8 weeks up until the time the mortgage is approved and your money is available. Since most home owners would prefer a fast closing, you might need to begin searching for other funding alternatives.

What's more, for those who have a less-than-perfect credit rating or don't have a routine source of income, it may be harder to qualify for a bank loan, with the more stringent loan guidelines banks have introduced of late. So does this mean you are without an option, but to drop your dream to venture into flipping? Certainly not, considering that you can always go the Medford hard money loan route to fund your flipping project.

If you apply for a hard money home loan in Medford, you will get what is possibly most essential to real estate transactions across the country — a fast closing of approximately fourteen days. Plus, the LTV value can range up to 70% of the property value, as estimated by a credentialed appraiser. A number of people regard hard money real estate loans to be more costly than regular financing, since the interest rates for such loans often start at 10%. But when you understand these loans are not long-term mortgage loans, the rate of interest can be misleading. Short-term loans of a couple months to a few years are best thought of as cost of capital, similar to all other expenditures in connection with a project. Once you've turned the house and have made a good profit, you're able to recoup this expense from the house — just like recovering the money spent on the brand-new appliances for the kitchen that you've put in.

Furthermore, even an individual with weak credit can still be eligible for a hard money mortgage. Medford hard money lenders do not approve a loan exclusively on the basis of the customer's credit score — instead they also look at the property or home, its value and location, and the home's ability to pay back the financing without the help of the applicant. The amount that a person can put upfront towards the home, how much practical experience he has in real estate investing, and price range of comparative properties in the same vicinity are other details that go into determining a borrower's qualification for a hard money real estate loan.

Searching for a hard money lender in Medford to fund your flipping business is not hard, provided that the opportunity that lies ahead of you is promising and offers a good potential for returns. Submit the form on this page or get in touch with us via phone to talk about the property or properties you have in mind.