A remarkable buy on a fix and flip property located in a very good area of the city shows up out of the blue — sounds too good to be true. Professional residential home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are able to haul in a profit of $40-$50k for the majority of homes. Without question, their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction skills have been major factors to their successes. Having said that, you have recently been brushing up your rehab and remodeling knowledge, have a licensed contractor lined up and are certain that you're capable of doing a great job on this property.

But financing is a separate question entirely. When you meet with a standard lender, like a bank for a loan, it likely will take no less than 30-60 days for your acceptance to come through and the funds to be furnished. So if you are anticipating a fast closing, it is important to understand that this could set you back by a few weeks, causing you to lose out on the home.

With banks adding more challenging loan criteria in the recent past, it has become more difficult for a self-employed person to obtain a home loan, especially when his credit rating is not perfect. So does this leave you with no other option, but to give up your aspiration of venturing into home flipping? Under no circumstances, especially while Naugatuck hard money loans can help you realize many amazing things in the real estate market.

A hard money home loan in Naugatuck gives you what is regarded as essential to most real estate sales — a quick closing of just a few weeks and sometimes less. Furthermore, hard money lenders will often consent to lending up to 70% LTV of the home value, as calculated by a certified third-party evaluation. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as higher in price than bank loans. But once you understand these loans are not long-term mortgage loans, the rate of interest tends to be misleading. The price of such short-term loans ought to be looked at on par with any other expenditure that you would need to meet for the project. After you fix up and sell off the house, recouping this expense is just like recuperating the money you spent for home appliances you put in the house.

In addition, even a person with weak credit can easily be eligible for a hard money mortgage. The applicant's credit score is not the sole deciding factor for Naugatuck hard money lenders — they also look at the house, what is it valued at, where it is located, and its capacity to bring back their financial commitment if everything does not go as intended. On top of that, if the individual can demonstrate past experience in equivalent real estate ventures, can put down cash for a down payment, and the price of comparative properties in the neighborhood works in his favor, he stands a really good shot of being approved for a hard money real estate loan.

So any time you run into a good and profitable flipping opportunity, relax knowing you will have a hard money lender in Naugatuck, ready to loan you the money that you need. Enter your info into the contact form on this page or call us to talk about the property or properties you have in mind.