There's this phenomenal opportunity to fix and flip this nice old house in a good area and it seems a lot like the deal you have been anticipating for quite some time. Everyone knows that expert professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can readily make an average profit margin of forty to fifty thousand dollars on their home projects. And without a doubt, they are helped in a major way via their professional experience, auction skills and familiarity with hard money loans. Having said that, you have recently been cultivating your rehab and renovation knowledge, have got a general contractor lined up and are confident that you're capable of doing a great job on this house.

But financing is a different question altogether. Should you opt for a conventional loan via a bank, you will end up waiting somewhere around 4-8 weeks until eventually the loan is approved and the money is available. With all the home owners seeking a fast closing, that doesn't seem like a great idea to you whatsoever.

To add to it, banks have already been tightening up their lending criteria in recent years, which makes it difficult for a person to get a traditional home loan if their credit rating is not perfect or he doesn't have a regular salaried occupation. So does this mean you are without an option, but to give up your ambition of venturing into the fix and flip business? Certainly not, on the grounds that you could always use the Newburyport, Massachusetts hard money loan approach to finance your flipping project.

A hard money home loan in Newburyport provides what is considered vital to many real estate deals — a quick closing of only a 2-3 weeks and sometimes less. Also, hard money lenders are capable of doing funding up to 70% LTV of the property's valuation, as calculated by a professional third-party evaluator. With the loan rates starting near 10%, hard money real estate loans might seem, initially, to be higher in price as compared with conventional bank financing. But usually, the rate of interest isn't as pertinent for these loans, because they will never be long-term loans. 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 all other expenditures involved with a project. Once you have resold the property or home and have made a good profit, you can recoup this expense from the home — very much like recouping the cost of brand-new appliances for the kitchen that you have put in.

Besides, hard money mortgages are easy qualifying, even if you posses poor credit. The borrower's credit score is not the lone determining factor for Newburyport hard money lenders — in addition, they analyze the home, what is it valued at, its location, and its potential to return their financial commitment if things should not go as planned. Other factors that affect a customer's acceptance for a hard money real estate loan can include the amount he can put towards a down payment, his former experience as a real estate investor, and price of similar, recently sold residences in the neighborhood.

So any time you come across a really good and profitable investment opportunity, be assured you'll have a hard money lender in Newburyport, willing to lend you the funds you may need. Fill out the form or get in touch with us via phone to talk about the property you have in mind.