Suppose that you've encountered this truly good bargain for a fix and flip property you found in a great location, and you're either an experienced real estate investor or a newbie who is looking to try his hand at flipping. Expert residential home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a profit of forty to fifty grand for most homes. Naturally, you also recognize that their success can be attributed to the fact that they are experts, are proficient in hard money loans, they know market trends really well and additionally, they are good at working a public auction for getting a reasonable price. On the other hand, you're convinced that your first class rehab and renovation talents will enable you to do an outstanding job for this house — furthermore, you already have lined up one of the premier contractors in the business to take care of this project.

But financing is usually a separate issue entirely. If you opt for an ordinary loan via a bank, you will need to wait approximately 1 to 2 months until eventually the loan is authorized and the funds are accessible. So if you will be hoping for a fast closing, you must be aware that this will set you back by a couple weeks, making you lose out on the opportunity.

On top of this, banks have been tightening up their lending requirements as of late, rendering it more tough for someone to receive a conventional home loan if their credit situation is not perfect or he does not have a consistent salaried occupation. So do you have to stop trying and abandon your dream to get into fix and flips? By no means, because you can always go the Binghamton hard money loan route to finance your rehab project.

If you decide to apply for a hard money home loan in Binghamton, you have access to what is possibly most vital to real estate negotiations throughout the country — a very fast closing of about a couple weeks. Additionally, loan amounts are made up to 70% loan-to-value of the "as is" house's valuation, as calculated by a professional appraiser. Some individuals regard hard money real estate loans to be more costly than regular loans, considering interest rates for these loans ordinarily start off at 10%. But the term lengths for these loans tend to be much shorter, which makes the rate less important. The cost of such short-term loans should be viewed much like every other expense that you might encounter in the course of the project. And when you have turned the property or home, recuperating this expense is the exact same as recuperating the expense for the bathroom improvements you performed.

Apart from this, hard money mortgages are not hard to qualify for, even when you have got a bad credit score. The borrower's credit score will not be the sole determining factor for Binghamton hard money lenders — they also consider the property, what is it valued at, its location, and its capability to bring back their investment if things do not go as planned. On top of this, if the person can demonstrate prior experience in equivalent real estate endeavors, can put down cash towards the down payment, and the price of similar properties in the vicinity works to his benefit, he has got an excellent chance of being eligible for a hard money real estate loan.

So any time you come across a really good and worthwhile investment opportunity, feel comfortable knowing you'll have a hard money lender in Binghamton, in a position to loan you the money that you need. Enter your info into the contact form or give us a call and let's discuss your property.