A fantastic buy on a fix and flip opportunity in a very good subdivision suddenly turns up — seems so good that it is hard to believe. Expert residential home flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a profit of forty to fifty grand on average. Undoubtedly, you also understand that their great results can be credited to the fact that they are professionals, are well versed in hard money loans, they know the marketplace quite well and they also are good at working an auction for getting a reasonable deal. Still, your rehab and renovation skills aren't bad either — in any case, you've already found an ideal licensed contractor to tackle the home.

But money can be a different problem entirely. A standard lender, say for example a bank, takes a minimum of one to two months to consent to the mortgage and provide the funds. Given that sellers give preference to a fast closing, it may be best to begin seeking out additional financing alternatives.

Moreover, in case you have a sub-optimal credit rating or do not have a conventional income source, it usually is tougher for you to be eligible for bank financing, seeing the stricter loan criteria banks have introduced as of late. So does this leave you with no other option, but to abandon your dream of venturing into the fix and flip business? Definitely not, because you also have the Trumbull hard money loan alternative.

A hard money home loan in Trumbull can provide what's considered vital to most real estate sales — a quick closing of only a 2-3 weeks and more often than not less. Additionally, financing can be made up to 70% loan-to-value of the "as is" value, as established by a qualified appraiser. With the rates starting at about 10%, hard money real estate loans may seem, at first, to be more pricey when compared with conventional bank lending products. But the time frames of these loans are much shorter, which makes the rate much less important. The cost of such short-term loans should be viewed much like any other financial outlay that you might encounter in the course of the project. Right after you remodel and resell the house, recouping this expense is no different than recovering the expense for new kitchen appliances you installed in the place.

Moreover, even individuals with poor credit can easily be eligible for a hard money mortgage. The customer's credit score is not the sole determining factor for Trumbull hard money lenders — in addition, they evaluate the piece of real estate, what is it valued at, its location, and its potential to earn back their investment if things do not go as planned. On top of this, if the individual can demonstrate past experience in similar real estate ventures, can put down money for the down payment, and the value of similar properties in the neighborhood works to his benefit, he will have an excellent likelihood of qualifying to obtain a hard money real estate loan.

So in the event you run into an outstanding and lucrative investment opportunity, be assured you will have a hard money lender in Trumbull, prepared to lend you the money you will need. Enter your info into the form or get in touch with us via phone and let's talk about your property.