Suppose you've run across this excellent deal for a fix and flip property you found in an ideal location, and you are either a seasoned real estate investor or a newbie who wants to try out flipping houses. You've probably heard that professional property flippers, similar to the married couple on HGTV's Flip or Flop, have an impressive average profit margin near $40,000 – $50,000. Of course, you also recognize that their successes are attributed to the simple fact that they're experts, are well versed in hard money loans, they know the marketplace quite well and additionally, they know how to work an auction to buy their homes at a good price. Still, your rehab and renovation skills aren't bad either — in any case, you've already identified a suitable licensed contractor to handle the home.

But where do you get the needed financing for home flipping? When you go after an ordinary loan from the bank, you will have to wait somewhere around 4-8 weeks up until the time the loan is authorized and your funds are ready. Given that home owners would prefer a fast closing, it may be best to start looking for additional funding alternatives.

Moreover, in case you have a less-than-perfect credit score or do not receive a routine income, it may be harder to qualify for a bank loan, with the tighter loan guidelines banks have introduced lately. So will a lack of financing stop you from pursuing your ambitions? Certainly not, given that you also have the Sterling, Massachusetts hard money loan option.

Should you obtain a hard money home loan in Sterling, you will get what is perhaps most essential to real estate negotiations throughout the country — a fast closing of around fourteen days. In addition, the LTV value can go up to 70% of the home value, as determined by a credentialed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be higher in price than bank financing. But once you consider these are not long-term home loans, the rate of interest can be misleading. As it pertains to short-term loans of 1 or 2 years or even less, you should think about them identical to every other expense for your project. After you rehab and unload the home, recovering this expense is just like recovering the cost of the stainless steel appliances you installed in the house.

Also, it's simple to be eligible for a hard money mortgage, regardless if your credit rating is not that great. The applicant's credit score isn't the primary determining factor for Sterling hard money lenders — in addition, they consider the home, how much it is worth, where it is located, and its potential to bring back their investment if things should not work out as planned. Adding to this, if the person can demonstrate past experience in comparable real estate projects, can place down cash for the down payment, and the value of similar homes in the area works in his favor, he has got an excellent likelihood of being approved to obtain a hard money real estate loan.

So if you have stumbled on a really great home to flip with a significant prospect of returns, you have also stumbled upon a hard money lender in Sterling who is prepared to fund your fix and flip venture. Complete the form on this page or call us and let's talk about your property.