A fabulous deal on a fix and flip property in an excellent subdivision shows up out of the blue — sounds so good that it is difficult to believe. Everyone knows that expert professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can make an average profit of $40,000 to $50,000 in their rehab business. It goes without saying their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction talents have had a significant role in their successes. With that being said, you've also been brushing up your rehab and remodeling knowledge, have a very good licensed contractor ready to go and are certain that you will be able to do a great job for this property.

But funding is often a separate question altogether. Should you get in touch with a regular lender, like a bank for financing, it is more than likely going to take no less than thirty to sixty days for your approval to come through and your funds to be distributed. Because most sellers prefer a fast closing, it may be advisable to start searching for additional funding alternatives.

With banks establishing tougher loan guidelines in the past few years, it is now more challenging for a self-employed person to get a mortgage loan, especially when his credit situation is not flawless. So will a shortage of funding keep you from sticking to your dream? Definitely not, seeing as you always have the Stonington, Connecticut hard money loan option.

Should you apply for a hard money home loan in Stonington, you have access to what's perhaps most important to real estate transactions throughout the country — a fast closing of around 14 days. Additionally, loans can be made up to 70% loan-to-value of the "as is" home's valuation, as determined by a licensed appraiser. With the loan rates starting off near 10%, hard money real estate loans might appear, initially, to be more expensive as compared with traditional bank loans. But usually, the interest rate is not as useful a measure for these loans, given that they are not long-term financing. As it pertains to short-term loans of one or two years or even less, you should consider them identical to any kind of other expense for your project. And as soon as you've sold the house, recouping this expense is comparable to recuperating the expense for the bathroom or other upgrades you performed.

Moreover, even individuals with poor credit can still qualify for a hard money mortgage. Stonington hard money lenders don't approve a loan solely according to the person's credit score — instead they also look at the property or home, its valuation and location, and the home's capacity to pay back the financing independent of the borrower. How much a person can put upfront for the house, his real estate experience, and selling price of comparative homes in the neighborhood are various other details that go into analyzing an applicant's eligibility for a hard money real estate loan.

If you happen to have found a really great fixer-upper with a significant prospect of returns, you've also discovered a hard money lender in Stonington who's willing to fund your rehab ventures. Submit the contact form or get in touch with us via phone to discuss your property or properties.