Suppose you've run into this really great deal for a fix and flip property located in an ideal neighborhood, and you are either an experienced real estate investor or a newbie who hopes to try his hand at flipping. Most folks know that skilled professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, are able to earn an average profit of forty to fifty thousand dollars when they flip properties. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction talents have been large factors to their successes. On the other hand, you're assured that your impressive rehab and remodeling abilities will enable you to do an outstanding job on this property — furthermore, you have already arranged to have one of the most recommended contractors in town to take care of the project.

But how can you find the needed financing for flipping? A typical lending institution, like for example a bank, takes a minimum of one to two months to authorize the mortgage and release the monies. So if you're hoping for a fast closing, it's important for you to understand or know that this could set you back by a couple of weeks, causing you to lose out on the home.

To add to it, banks have already been tightening up their lending standards in recent times, rendering it more challenging for someone to receive a typical home loan if their credit circumstances are not perfect or he is lacking a regular salaried job. So do you have to stop trying and forego your aspiration to venture off into the real estate market? Under no circumstances, particularly while Watertown, Connecticut hard money loans can help you accomplish many amazing things in the real estate market.

When you put in an application for a hard money home loan in Watertown, you have access to what's possibly most vital to real estate purchases throughout the country — a fast closing of about fourteen days. Furthermore, hard money lenders are capable of doing loans up to 70% LTV of the property or home value, as assessed by a professional third-party appraiser. Some individuals believe hard money real estate loans to be more expensive than customary loans, since the interest rates for such loans commonly start out at 10%. But once you consider these loans are not long-term mortgage loans, the rate of interest can be misleading. Short-term loans of several months to a handful of years are best looked at as cost of capital, very much like every other financial outlay associated with a project. Once you have sold the house and have made a positive return, you're able to recover this expense from the property — similar to recuperating the money spent on the brand-new kitchen appliances that you have installed.

Additionally, it's simple to obtain a hard money mortgage, even in the event your credit score is not that extraordinary. The borrower's credit score will not be the lone determining factor for Watertown hard money lenders — in addition, they consider the house, what is it valued at, where it is located, and its capacity to bring back their investment if everything does not go as intended. The amount that a person can put upfront towards the property, his past real estate experience, and selling price of comparative homes in the same area are various other details that go into establishing a borrower's suitability for a hard money real estate loan.

So if you have stumbled on an excellent home to flip with a significant probability of returns, you have also discovered a hard money lender in Watertown that is happy to finance your fix and flip venture. Fill out the contact form or give us a call and let's discuss the project you have in mind.