An outstanding deal on a fix and flip opportunity located in a good area of the city all of a sudden shows up — seems too good to be true. Many people know that capable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, can turn an average profit margin of forty to fifty thousand dollars on their flips. And indeed, they are aided in a major way as a result of their professional knowledge, auction abilities and knowledge of hard money loans. Having said that, you've recently been brushing up your rehab and renovation skills, have a very good licensed contractor arranged and are confident that you can do a bang up job for this home.

But financing is often a different question entirely. A standard lending institution, say for example a bank, takes a minimum of 1 to 2 months to consent to the loan and hand over the funds. Considering that all the sellers are wanting to find a fast closing, that doesn't appear to be a wise idea to you whatsoever.

On top of this, banks have already been tightening up their lending criteria as of late, which makes it difficult for people to get a traditional loan if their credit situation is not perfect or he doesn't have a regular salaried occupation. So will a shortage of funds prevent you from pursuing your aspirations? Definitely not, seeing as you also have the North Stonington, Connecticut hard money loan alternative.

A hard money home loan in North Stonington gives you what's possibly most sought after by real estate investors — a very fast closing time of as little as a few weeks. Further, loan amounts can be made up to 70% loan-to-value of the "as is" property's valuation, as established by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as costlier than bank financing. But once you consider these are not long-term home loans, the rate of interest may be misleading. The cost of such short-term loans should be viewed much like any other cost that you might encounter during the project. After you rehab and unload the property, recovering this expense is the same as recouping the cost of the new kitchen appliances you put in the place.

Moreover, even someone with poor credit can easily be eligible for a hard money mortgage. As an alternative for focusing exclusively on the borrower's credit score or wages, North Stonington hard money lenders, who can be a private company or an individual person, approve a loan after examining the home value, ease of marketability, where it is located, and the probability of recuperating their capital in case they have to foreclose the loan. On top of that, if the applicant have proven experience in similar real estate projects, can put down money for the down payment, and the price of comparable houses in the area works in his favor, he has a good shot of being eligible to get a hard money real estate loan.

Finding a hard money lender in North Stonington to cover expenses for your renovation project is not difficult, provided that the opportunity that lies ahead of you is promising and has the right potential for returns. Complete the form or call us to talk about your property.