A remarkable deal on a fix and flip property located in an excellent neighborhood suddenly shows up — seems so good that it is hard to believe. You've heard that competent home flippers, such as the husband and wife on HGTV's Flip or Flop, have a remarkable average return of around $40,000 – $50,000. And indeed, they are aided in a major way by their professional knowledge, auction expertise and knowledge of hard money loans. On the other hand, you are convinced that your impressive rehab and remodeling skills can help you do a great job on this home — what's more, you already have lined up one of the finest building contractors in town to take care of the job.

But capital is a separate problem altogether. If you go after a conventional loan via a bank, you will wind up waiting roughly one to two months until eventually the loan is approved and the money is readily available. Because most home owners prefer a fast closing, you may have to begin seeking out additional financing options.

Furthermore, for those who have a sub-optimal credit situation or do not have a regular source of income, it is usually tougher for you to qualify for a bank loan, considering the more stringent loan criteria banks have issued recently. So will inadequate financing keep you from following your dream? Certainly not, because you could always go the Simsbury, Connecticut hard money loan route to finance your flipping project.

A hard money home loan in Simsbury boasts what is possibly most important to real estate investors — a very fast closing time of as few as a few weeks. Plus, the LTV value can go up to 70% of the place's valuation, as evaluated by a competent appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more expensive than bank lending products. But the lengths of these loans are quite short, which makes the rate much less important. When it comes to short-term loans of a few years or even less, you should look at them the same as you would for any other expense for your project. When you have resold the property and have made a good financial gain, you'll be able to reclaim this expense from the property — very much like recuperating the money spent on the brand-new kitchen appliances that you installed.

In addition, even an individual with weak credit will be able to be eligible for a hard money mortgage. The borrower's credit score is not the single determining factor for Simsbury hard money lenders — in addition, they evaluate the piece of real estate, what is it valued at, its location, and its capability to return their financial commitment if things do not work out as intended. How much an applicant can put upfront towards the home, his real estate experience, and price range of comparative properties in the area are other details that go into ascertaining an applicant's eligibility for a hard money real estate loan.

If you happen to have stumbled upon a really great home to flip with a high probability of returns, you have also found yourself a hard money lender in Simsbury who is ready to provide financing for your fix and flip project. Fill out the contact form on this page or call us and let's discuss the property you have in mind.