An incredible buy on a fix and flip property in a good subdivision shows up out of the blue — seems too good to be true. Professional residential home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a gain of $40-$50k as an average on more than one occasion. Of course, you also understand that their great results are attributed to the simple fact that they're experts, are well versed in hard money loans, they understand market trends really well and additionally, they know how to work a public auction to buy their houses at an appropriate price. With that being said, you've also been brushing up your rehab and renovation knowledge, have a very good general contractor lined up and are confident that you can do a bang up job for this house.

But capital is a separate problem altogether. A traditional lender, like for example a bank, takes at the very least 1-2 months to authorize the financing and release the cash. With the home owners seeking a fast closing, that doesn't appear to be a wise idea to you at all.

Moreover, should you have an unfavorable credit situation or don't receive a consistent income, it may be more challenging to be eligible for a bank financing, seeing the more stringent loan requirements banks have put in place of late. So must you admit defeat and abandon your aspiration to get into real estate? Definitely not, because you always have the Winchester, Connecticut hard money loan alternative.

A hard money home loan in Winchester boasts what is probably most important to real estate investors — a fast closing time period of as few as 14 days. What's more, the LTV value can go up to 70% of the property's valuation, as evaluated by a certified appraiser. With the interest rates starting out at about 10%, hard money real estate loans may seem, at first, to be higher in price when compared with conventional bank lending products. But once you appreciate that these are not long-term home loans, the interest rate may be misleading. The price of such short-term loans should be evaluated on par with any other cost that you will encounter during the project. Right after you fix up and resell the property, recuperating this expense is the same as recouping the money you spent for new kitchen appliances you placed into the home.

Besides, hard money mortgages are easy qualifying, regardless if you have poor credit. The person's credit score isn't the single deciding factor for Winchester hard money lenders — they also evaluate the property, its market valuation, its location, and its ability to return their financial commitment if everything does not go as intended. On top of that, if the borrower can demonstrate past experience in similar real estate projects, can put down money for the down payment, and the cost of comparable homes in the neighborhood works in his favor, he stands a good shot of qualifying to obtain a hard money real estate loan.

So any time you come across a really good and worthwhile flipping opportunity, rest assured you'll have a hard money lender in Winchester, willing to loan you the money you may need. Fill out the form or get in touch with us via phone and let's talk about the project you have in mind.