Imagine you've run into this really great bargain for a fix and flip property in a great neighborhood, and you're either a seasoned real estate investor or a newbie who hopes to try his hand at flipping. You've heard that professional property flippers, like the couple on HGTV's Flip or Flop, have an impressive average profit margin near $40,000 – $50,000. No need to explain that their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction skills have had a big role in their results. With that being said, you've also been developing your rehab and remodeling skills, have got a contractor lined up and are confident that you can do an impressive job on this home.

But money is usually a separate question altogether. A standard lending institution, for instance a bank, takes at least 1-2 months to approve the financing and release the money. Thus if you are anticipating a fast closing, it is important to be aware that this may cost you a couple of weeks, causing you to lose out on the sale.

To add to it, banks have already been tightening their lending standards in recent times, which makes it difficult for a person to receive a regular loan if their credit rating is not perfect or he does not possess a regular salaried job. So should you give up and abandon your ambition to venture into real estate? Not at all, especially when North Reading, Massachusetts hard money loans can help you realize great things in the real estate market.

A hard money home loan in North Reading provides what is deemed imperative to most real estate transactions — a fast closing of only a couple of weeks and oftentimes even less. Further, financing can be made up to 70% loan-to-value of the as-is property's valuation, as established by a professional appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be more pricey than bank financing. But in reality, the rate of interest is not as relevant for these loans, given that they will never be long-term loans. Short-term loans of a couple months to a handful of years are best understood in terms of cost of capital, much like every other expenditure associated with a project. And when you have flipped the property, recuperating this expense is identical to recouping the expense for the kitchen and bath updates you did.

In addition, even individuals with bad credit will be able to qualify for a hard money mortgage. The customer's credit score will not be the sole deciding factor for North Reading hard money lenders — additionally, they analyze the piece of real estate, what is it valued at, its location, and its potential to earn back their financial commitment if things do not work out as planned. Additional factors that impact an applicant's eligibility for a hard money real estate loan include what amount of money he is able to put towards a down payment, his previous experience being a real estate investor, and selling price of similar, fairly recently sold properties nearby.

So should you come across a really good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in North Reading, prepared to loan you the funds you'll need. Fill out the contact form or get in touch with us via phone to talk about your project.