There's this amazing opportunity to rehab and flip this nice outdated home in a very good part of town and it seems a lot like the deal you've been eagerly waiting on for quite some time. Professional property flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a profit of forty to fifty grand as an average on more than one occasion. And sure, they are helped in a big way via their professional know-how, auction abilities and familiarity with hard money loans. With that being said, you have also been developing your rehab and remodeling skills, have a very good building contractor lined up and are positive that you can do an impressive job on this property.

But financing is usually a different issue altogether. A typical lending institution, say for example a bank, takes at least 1-2 months to consent to the mortgage and hand over the capital. With the home owners wanting a fast closing, that does not appear like a great idea to you at all.

Furthermore, for those who have a sub-optimal credit score or do not receive a regular income, it is usually tougher to qualify for bank financing, considering the stricter loan criteria banks have issued of late. So will a lack of funding stop you from sticking with your aspirations? Absolutely not, seeing as you also have the Waterford, Connecticut hard money loan alternative.

If you decide to apply for a hard money home loan in Waterford, you have access to what's probably most vital to real estate purchases throughout the country — a quick closing of around 2 weeks. What's more, the LTV value can range up to 70% of the property value, as determined by a certified appraiser. Some people believe hard money real estate loans to be costlier than regular financing, since the interest rates of such loans usually start off at 10%. But when you understand these loans are not long-term loans, the interest rate can be misleading. Short-term loans of a couple months to a handful of years are best thought of in terms of cost of capital, similar to any other expense involved with a project. And as soon as you've finally flipped the property, recovering this expense is the exact same as recouping the expense for the kitchen and bath improvements you performed.

Moreover, even a person with weak credit can easily qualify for a hard money mortgage. The borrower's credit score is not the single determining factor for Waterford hard money lenders — they also consider the home, what is it valued at, where it is located, and its capacity to bring back their financial commitment if things should not work out as planned. Adding to this, if the applicant can demonstrate prior experience in comparable real estate projects, can put down cash for a down payment, and the cost of comparable properties in the neighborhood works to his benefit, he stands an excellent chance of being approved to obtain a hard money real estate loan.

Locating a hard money lender in Waterford to fund your flipping business is not hard, so long as the opportunity that lies ahead of you is promising and boasts a good prospect for returns. Fill out the contact form or get in touch with us via phone to talk about your property.