An outstanding deal on a fix and flip property located in a very good subdivision suddenly shows up — seems so good that it's hard to believe. You've probably heard that competent home flippers, similar to the married couple on HGTV's Flip or Flop, have an impressive average profit close to $40,000 – $50,000. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have been major factors to their success. With that being said, you've also been cultivating your rehab and renovation skills, have a licensed contractor ready for the project and are positive that you're capable of doing a great job on this property.

But where can real estate investors obtain financing? A traditional lender, for instance a bank, takes at a minimum 1-2 months to approve the financing and hand over the funds. Since the majority of sellers would rather have a fast closing, you might need to start seeking out some other financing alternatives.

To add to it, banks have already been tightening up their lending criteria in recent years, making it difficult for someone to obtain a conventional loan if their credit circumstances are not perfect or he does not possess a regular salaried occupation. So does that mean you have no option, but to abandon your aspiration to venture into the fix and flip business? Certainly not, due to the fact you can always go the Stoneham, Massachusetts hard money loan route to pay for your home renovating project.

A hard money home loan in Stoneham provides what's considered essential to most real estate sales — a fast closing of just a 2-3 weeks and oftentimes even less. Further, loans are made up to 70% loan-to-value of the as-is house value, as deemed by a professional appraiser. With the lending rates starting off at about 10%, hard money real estate loans might seem, at first, to be higher in price compared to traditional bank financing. But the term lengths for these loans tend to be rather short, which means the interest rate is much less significant. As it pertains to short-term loans of 1 or 2 years or even less, you should consider them much like you would other expenditures for your project. And once you have finally sold the property, recuperating this expense is identical to recovering the expense for the bathroom or other improvements you did.

What's more, it is simple to obtain a hard money mortgage, even when your credit situation is not that extraordinary. Stoneham hard money lenders do not take on a loan strictly on the basis of the applicant's credit score — rather they additionally look at the home, its location and value, and the property's ability to pay back the loan by itself. Adding to this, if the borrower can demonstrate past experience in equivalent real estate ventures, can place down money towards the down payment, and the value of comparable houses in the area works to his benefit, he stands an excellent chance of qualifying to obtain a hard money real estate loan.

If you happen to have found a really great real estate opportunity with a huge probability of returns, you've also stumbled upon a hard money lender in Stoneham that's willing to provide financing for your flipping projects. Submit the contact form on this page or call us and let's discuss the project you have in mind.