Suppose you've come across this truly good bargain for a fix and flip property located in a great location, and you happen to be either an experienced real estate investor or a first-timer who really wants to try his hand at flipping. You've heard that veteran house flippers, much like the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit of around $40,000 – $50,000. And sure, they are helped in a major way as a result of their professional knowledge, auction abilities and understanding of hard money loans. Still, your rehab and remodeling knowledge isn't bad either — aside from that, you have already found a good general contractor to take on this job.

But how can you get the necessary financing for flipping? A traditional lender, for instance a bank, takes at a minimum 1 to 2 months to consent to the financing and release the funds. Considering that the home owners are wanting to find a fast closing, that does not appear to be a good option to you whatsoever.

With banks adding harder loan standards in recent years, it's become more difficult for a self-employed person to find a home loan, particularly if his credit rating is not optimal. So do you have to admit defeat and abandon your dream to get into real estate? By no means, especially while Westfield hard money loans enable you to realize great things in real estate.

If you obtain a hard money home loan in Westfield, you're going to get what is possibly most important to real estate transactions across the country — a very fast closing of approximately a couple weeks. In addition, the LTV value can range up to 70% of the property value, as evaluated by a credentialed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank financing. But once you appreciate that these are not long-term loans, the rate can be misleading. The price tag on such short-term loans should be looked at on par with every other expense that you would have to meet for the project. After you renovate and sell the property, recuperating this expense is no different than recouping the cost of the stainless steel appliances you put in the place.

Also, it's easy to obtain a hard money mortgage, regardless of whether your credit score is not that extraordinary. The borrower's credit score is not the exclusive determining factor for Westfield hard money lenders — they also look at the home, its market value, where it is located, and its capability to earn back their investment if things do not go as intended. Adding to this, if the applicant can demonstrate past experience in equivalent real estate projects, can put down money for the down payment, and the value of similar properties in the vicinity works in his favor, he stands an excellent shot of being eligible for a hard money real estate loan.

So in case you have stumbled upon a really good fixer-upper with a significant prospect of returns, you have also stumbled upon a hard money lender in Westfield who is ready to provide funding for your rehab projects. Submit the form or give us a call to discuss your property.