There is this phenomenal opportunity to rehab and flip this wonderful outdated home in a good part of town and it looks like the one you've been eagerly waiting on for a long time. A majority of people know that expert professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, can make an average profit margin of forty to fifty thousand dollars when they flip properties. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have been major factors to their success. Having said that, you've recently been developing your rehab and renovation skills, have got a building contractor ready to go and are confident that you're capable of doing a stellar job on this home.

But financing is usually a separate issue altogether. A typical lending institution, for instance a bank, takes a minimum of 1-2 months to approve the loan and provide the funds. So if you are wishing for a fast closing, it is important you recognize that this will cost you a few weeks, making you lose out on the opportunity.

With banks establishing tougher loan requirements in the last few years, it is more challenging for a self-employed individual to find a mortgage loan, particularly if his credit circumstances are not flawless. So should you admit defeat and forego your dream to venture into the real estate market? Definitely not, because you also have the Newton hard money loan option.

A hard money home loan in Newton provides what is perhaps most crucial to real estate investors — a fast closing in as little as 14 days. Plus, the LTV value can reach up to 70% of the property's valuation, as determined by a competent appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank loans. But the time frames of these loans tend to be comparatively shorter, which makes the rate far less significant. The price of such short-term loans ought to be considered on par with any other financial outlay that you would encounter during the project. And as soon as you have finally sold the property, recuperating this expense is the exact same as recuperating the expense for all the kitchen and bath updates you performed.

Furthermore, even a person with weak credit can still qualify for a hard money mortgage. Newton hard money lenders don't take on a loan strictly on the basis of the customer's credit score — rather they additionally examine the property or home, its location and value, and the home's capability to pay back the loan on its own. How much a borrower can put down beforehand for the home, his past real estate experience, and price range of equivalent homes in the area are other details that go into ascertaining a borrower's eligibility for a hard money real estate loan.

So if you have found a really good real estate opportunity with a significant chance of returns, you've also discovered a hard money lender in Newton that is ready to fund your fix and flip ventures. Enter your info into the contact form on this page or give us a call to discuss the property you have in mind.