Suppose you've come across this excellent bargain on a fix and flip property in a great neighborhood, and you are either a seasoned real estate investor or a first-timer who really wants to try out flipping homes. Expert home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a gain of $40-$50k on average. And yes, they are helped in a big way due to their professional know-how, auction expertise and knowledge of hard money loans. Nonetheless, your rehab and renovation skills aren't that bad either — aside from that, you've already located an ideal general contractor to start the home.

But capital is usually a different issue entirely. A typical lender, say for example a bank, takes a minimum of one to two months to approve the financing and provide the capital. So if you will be anticipating a fast closing, you have to understand that this will cost you a few weeks, causing you to miss out on the sale.

To add to it, banks have been tightening up their lending criteria in recent times, rendering it more difficult for a person to receive a conventional home loan if their credit situation is not flawless or he does not have a regular salaried profession. So does this mean you have no option, but to give up your ambition of venturing into the fix and flip business? Absolutely not, seeing as you also have the New Shoreham, Rhode Island hard money loan alternative.

A hard money home loan in New Shoreham offers what's deemed essential to many real estate transactions — a fast closing of just a couple of weeks and oftentimes even less. Furthermore, hard money lenders can approve lending up to 70% LTV of the home value, as calculated by a professional third-party evaluation. With rates starting off near 10%, hard money real estate loans might seem, at first, to be more costly compared to traditional bank lending products. But once you appreciate that these are not long-term home loans, the rate may be misleading. Short-term loans of a couple of months to a handful of years are best approached in terms of cost of capital, the same as any other expense involved with a project. And when you have turned the home, recouping this expense is the exact same as recouping the expense for all the bathroom upgrades you performed.

Additionally, it is simple to obtain a hard money mortgage, even when your credit situation is not that extraordinary. Rather than focusing only on the person's credit score or income, New Shoreham hard money lenders, who can be a private company or an individual person, authorize a loan as a result of evaluating the home value, how easy it will be to market, its location, and the odds of recouping their money in the event of foreclosure. Several other criteria that influence a customer's approval for a hard money real estate loan can include how much he can put into a down payment, his former experience being a real estate investor, and price range of similar, just recently sold homes in the area.

So if you have stumbled upon a really good home to flip with a significant chance of returns, you've also stumbled upon a hard money lender in New Shoreham who's ready to provide funding for your flipping venture. Fill out the form on this page or call us and let's discuss the project you have in mind.