An incredible deal on a fix and flip property located in an excellent neighborhood all of a sudden shows up — seems so good that it is hard to believe. Expert property flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a gain of forty to fifty grand for most homes. Naturally, you also know that their successes are due to the fact that they are experts, are knowledgeable in hard money loans, they know the market quite well and they also know how to work an auction to buy their properties at an appropriate deal. Having said that, you've also been developing your rehab and renovation skills, have a building contractor lined up and are positive that you can do an impressive job for this house.

But financing is often a separate question altogether. When you get in touch with a common lender, such as a bank for a mortgage loan, it is in all likelihood going to take, at a minimum, thirty to sixty days for the approval to be completed and your funds to be sent out. Due to the fact all the sellers are wanting to find a fast closing, that does not seem like a great idea to you whatsoever.

On top of this, banks have been tightening their lending standards in recent years, rendering it more hard for people to obtain a traditional loan if their credit circumstances are not flawless or he is lacking a regular salaried job. So should you give up and forego your dream to get into fix and flips? Definitely not, seeing as you also have the Southborough, Massachusetts hard money loan option.

A hard money home loan in Southborough provides what is viewed as vital to many real estate sales — a fast closing of only a 2-3 weeks and at many times even less. Aside from that, financing can be done for up to 70% loan-to-value of the as-is house value, as determined by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as higher in price than bank lending products. But the time frames of these loans are quite shorter, which makes the interest rate far less significant. Short-term loans of several months to a handful of years are best thought of in terms of cost of capital, very much like every other expense associated with a project. Right after you renovate and resell the property, recovering this expense is no different than recovering the one for home appliances you placed into the home.

Moreover, even an individual with bad credit can easily qualify for a hard money mortgage. Southborough hard money lenders don't approve a loan solely judging by the borrower's credit score — rather they also look at the home, where it is located and what it is worth, and the property's capability to pay back the financing on its own. Other factors that impact a customer's approval for a hard money real estate loan can include how much money he can put into a down payment, his former experience as a real estate investor, and price of similar, fairly recently sold homes in the area.

So if you have stumbled on a really good home to flip with a high prospect of returns, you have also found yourself a hard money lender in Southborough who's prepared to finance your flipping venture. Fill out the contact form or call us to talk about the project you have in mind.