A fantastic bargain on a fix and flip property located in an excellent area of the city suddenly shows up — sounds too good to be true. You may have heard that professional house flippers, like the husband and wife on HGTV's Flip or Flop, turn a remarkable average return close to forty to fifty thousand dollars. Undoubtedly, you also are aware that their great results are due to the fact that they are professionals, are well versed in hard money loans, they understand the market really well and they also know how to work a public auction to purchase their properties at a good price. Still, your rehab and renovation knowledge isn't that bad either — besides, you have already identified a good contractor to handle this project.

But funding is often a separate issue altogether. For those who apply for a normal bank loan, you will need to wait around roughly 1 to 2 months until eventually the mortgage loan is approved and the funding is ready. Since the majority of home owners give preference to a fast closing, you might have to begin seeking out some other funding options.

What's more, if you have an unfavorable credit rating or do not receive a consistent income, it usually is tougher for you to be eligible for a bank financing, considering the more stringent loan criteria banks have introduced recently. So do you have to stop trying and abandon your desire to embark into fix and flips? Absolutely not, because you also have the North Haven, Connecticut hard money loan alternative.

A hard money home loan in North Haven offers you what is regarded as imperative to most real estate deals — a fast closing of just a few weeks and more often than not less. Furthermore, hard money lenders frequently agree to lending up to 70% LTV of the home's valuation, as determined by a licensed third-party appraiser. With the rates starting at about 10%, hard money real estate loans may appear, at first glance, to be more pricey in comparison with conventional bank loans. But usually, the interest rate is not as pertinent for these loans, given that they will never be long-term financing. When it comes to short-term loans of 1 or 2 years or even less, you should look at them much like you would other expenses for the project. After you fix up and sell off the home, recovering this expense is the same as recovering the cost of the home appliances you put in the property.

Besides, hard money mortgages are easy qualifying, even when you have a low credit score. North Haven hard money lenders do not approve a loan exclusively based on the person's credit score — rather they also look at the property, its location and value, and the property's ability to pay back the financing independent of the person. Adding to this, if the applicant have proven experience in equivalent real estate projects, can place down money towards the down payment, and the cost of comparative homes in the area works to his benefit, he has a good likelihood of being approved to get a hard money real estate loan.

So if you have stumbled on a really great home to flip with a huge potential for returns, you've also stumbled upon a hard money lender in North Haven who's willing to fund your rehab ventures. Submit the contact form on this page or give us a call to discuss your project.