There's this amazing opportunity to fix and flip this nice old property in a good area and it seems a lot like the one you've been wanting for quite a while. Expert house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of generating a profit of $40-$50k as an average on more than one occasion. And without a doubt, they are aided in a big way via their professional knowledge, auction expertise and familiarity with hard money loans. Nonetheless, your rehab and renovation knowledge isn't that bad either — aside from that, you've already found a suitable contractor to handle this project.

But money is a different question altogether. A typical lender, like for example a bank, takes at the very least one to two months to approve the financing and provide the capital. Since most sellers give preference to a fast closing, it may be advisable to begin looking for additional financing alternatives.

As well as this, if you have an unfavorable credit rating or don't have a conventional source of income, it is usually tougher for you to be eligible for bank financing, with the tighter loan requirements banks have issued recently. So does that mean you have no option, but to drop your aspiration to venture into home renovating? Certainly not, on the grounds that you could always use the Merrimac, Massachusetts hard money loan approach to fund your home renovating project.

A hard money home loan in Merrimac provides what is considered essential to most real estate transactions — a very fast closing of only a couple of weeks and sometimes even less. Further, loan amounts can be made up to 70% loan-to-value of the as-is house value, as calculated by a licensed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as higher in price than bank loans. But usually, the lending rate isn't as relevant for these loans, because they will never be long-term loans. When it comes to short-term loans of one or two years or even less, you should look at them similar to any other expense for your project. Once you've sold the home and have made a successful profit, you'll be able to recover this expense from the property — the same as recuperating the cost of brand-new kitchen appliances that you've installed.

Additionally, it is easy to obtain a hard money mortgage, even if your credit situation is not that great. Merrimac hard money lenders don't authorize a loan solely according to the customer's credit score — rather they will evaluate the property or home, its location and value, and the home's capability to pay back the loan by itself. The amount that an applicant can put down in advance towards the property or home, how much practical experience he has in real estate investing, and price range of comparative properties in the neighborhood are other details that go into determining a person's qualification for a hard money real estate loan.

So in case you have stumbled on an excellent home to flip with a significant potential for returns, you have also discovered a hard money lender in Merrimac who is prepared to fund your flipping venture. Complete the form on this page or call us to talk about your property or properties.