You are finally ready to take out fix and flip loans Massachusetts and kick start your project? This is undeniably one of the best decisions you can ever make as a real estate investor looking to leave a mark in the industry. After all, the loan will help you deal with your financial woes without the hassle.
Despite this, not everyone who works with fix and flip lenders Massachusetts lives to appreciate this decision. For some, they regret the decision of counting on such lenders, yet they could be better off looking elsewhere. Even though it feels as if you are not to blame, there is a good chance you’ve been making costly mistakes with your choice of lender.
That leaves many wondering what it takes to separate the good from the bad. If you happen to be in this category, today is you lucky day. Below are some of the red flags to look out for in a hard money lender Massachusetts.
Dodging Your Questions
There is nothing wrong when a borrower peppers a lender with questions. This action is aimed at making sure you find answers to all your burning questions before you finally take up the loan. However, it’s not normal for a lender to avoid answering some of your questions and it should be viewed as ignorance or lack of experience.
A reputable fix and flip lender takes the time to ensure you understand all the details about a loan. In the event that a lender ducks your questions, there is a good chance they might be trying to hide something. Such lenders ought to be avoided at all costs.
Significantly Different Interest Rates from Other Lenders
You think you’ve found hard money real estate loans Massachusetts whose interest rates can’t be matched by anything else. In some cases, though, those rates come with strings attached. For instance, you may only enjoy a super-low-interest rate, but only for an introductory period.
Once the introductory period lapses, the interest rate goes up substantially. To avoid settling for such rental loans Massachusetts, take the time to compare the interest rates with what other lenders offer. That way, you can easily tell whether or not you’re getting the best deal possible.
Be wary of the above and other red flags while searching around for the best fix and flip lender in Massachusetts to avoid repeating them in the future.