Newton Massachusetts Real Estate professional Susie Hsu & Kevin Walsh Discusses Ways to Finance Rehab Properties in Newton Massachusetts

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October 12, 2009, by Susie Hsu in Real Estate Investing

You need to interview multiple brokers rather than just using the first one you come across. You should approach choosing a Newton real estate agent just like you would hiring an attorney, doctor or insurance agent. Look at several resources in the Newton Massachusetts a place where you will have access to meet your financial necessity.

When it comes to getting loans for handyman's dream properties, getting financing is more difficult than for traditional home purchases.

When working on fixers you may want to consider seeking a hard money lender for financing rather than a traditional mortgage broker.

Read the local paper in the Profile.market area, and you can find financing options and alternative mortgages here as well as through your real estate agent and via investment property finance firms.

Hard money lenders are much more flexible. For example, while most banks look at the current estimated value to determine how much money they will loan, hard money lenders will look at the projected value after repairs to determine the amount of money they will loan.

It might be a local mortgage banker in Newton Massachusetts that knows the procedures to follow and how to find the right people to assist you in obtaining acceptable financing for your investment property.

It costs a lot more to get a hard money loan than it does to finance traditionally. Typically interest rates range from 12-16%. Please note that you may be required to pay 3 to 5 points upfront as well.

The reason people go this route is they can get money Beyond the actual purchase of the property which is generally unheard of in traditional financing. This money can then be used to make repairs to increase the value of the property.

Make sure you include them in your purchase and holding costs so that you end up with the profits you are looking for on the property after all is said and done and you simply look at the costs of hard money loans as a cost of doing business.

In order to qualify for your very first loan in Newton is your toughest. Once you do it once or twice it will become much easier.

For more information, please feel free to call me at 617-332-3420 or e-mail me at susie@move2Boston.com. You can also access www.move2boston.com.