A remarkable deal on a fix and flip opportunity in an excellent area of the city all of a sudden shows up — sounds so good that it's difficult to believe. Everyone knows that capable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can generate a typical profit margin of $40,000 to $50,000 on their home projects. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction talents have been large factors to their success. Nevertheless, you are certain that your impressive rehab and renovation skills will assist you to do a superb job for this home — in addition, you already have lined up one of the best general contractors in town to take care of this job.

But financing is a different issue altogether. In the event you get in touch with a customary lending institution, such as a bank for a mortgage loan, it's in all likelihood going to take no less than 30-60 days for your acceptance to be completed and the money to be dispersed. With the home owners wanting a fast closing, that does not appear like a good option to you in the slightest.

With banks adding tougher loan requirements in recent years, it is more challenging for a self-employed individual to obtain a home loan, especially if his credit score is not optimal. So does that leave you with no other option, but to give up your aspiration of venturing into home renovating? By no means, considering that you could always go the New Canaan, Connecticut hard money loan route to pay for your flipping project.

A hard money home loan in New Canaan offers what is viewed as crucial to most real estate sales — a quick closing of only a few weeks and at times even less. What's more, the LTV value can reach up to 70% of the property value, as evaluated by a credentialed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as costlier than bank loans. But if you consider these loans are not long-term mortgage loans, the rate of interest may be misleading. Short-term loans of a couple of months to a handful of years are best understood in terms of cost of capital, the same as every other expenditure related to a project. And as soon as you have turned the house, recuperating this expense is the exact same as recuperating the expense for the kitchen and bath upgrades you performed.

Additionally, it's easy to obtain a hard money mortgage, even in the event your credit rating is not that extraordinary. The customer's credit score will not be the primary determining factor for New Canaan hard money lenders — additionally, they look at the home, how much it is worth, its location, and its potential to return their investment if everything does not go as intended. Other factors that have an impact on a customer's approval for a hard money real estate loan can include what amount of money he can put into a down payment, his previous experience as a real estate investor, and price of comparable, just recently sold homes in the neighborhood.

So should you come across an outstanding and profitable investment opportunity, rest assured you'll have a hard money lender in New Canaan, willing to loan you the funds you will need. Complete the form or give us a call and let's talk about the project you have in mind.