Suppose that you've run across this excellent deal on a fix and flip property you found in a terrific neighborhood, and you happen to be either a skilled real estate investor or a first-timer who really wants to try out flipping homes. Most folks know that capable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can readily make an average profit of forty to fifty thousand dollars in their rehab business. And indeed, they are aided in a major way as a result of their professional know-how, auction skills and knowledge of hard money loans. However, you are convinced that your first class rehab and renovation abilities will assist you to do an outstanding job for this home — additionally, you already have arranged to have one of the best building contractors in town to take care of the project.

But how exactly can real estate investors get financing? A typical lending institution, say for example a bank, takes at the very least one to two months to approve the financing and hand over the money. Considering that the home owners are seeking a fast closing, that doesn't appear like a good option to you whatsoever.

On top of this, banks have been tightening up their lending criteria in recent years, which makes it challenging for people to get a regular loan if their credit situation is not flawless or he is lacking a regular salaried profession. So do you have to give up and forego your ambition to embark into fix and flips? Under no circumstances, particularly when Lancaster hard money loans will assist you to realize great things in the real estate world.

A hard money home loan in Lancaster provides what's viewed as vital to many real estate transactions — a quick closing of only a 2-3 weeks and more often than not even less. Furthermore, hard money lenders can approve loans up to 70% LTV of the home's valuation, as determined by a credentialed third-party evaluation. With the interest rates starting off around 10%, hard money real estate loans might seem, at first, to be higher priced in comparison with traditional bank lending products. But once you understand these are not long-term loans, the rate of interest tends to be misleading. The price tag on such short-term loans should be viewed on par with any other expense that you might encounter during the project. Once you have resold the house and have made a positive profit, you'll be able to recover this expense from the property or home — just like recuperating the money necessary for the brand-new home appliances that you've installed.

Additionally, it is simple to be eligible for a a hard money mortgage, even if your credit situation is not that superb. Lancaster hard money lenders do not authorize a loan solely according to the customer's credit score — instead they will evaluate the property or home, its location and value, and the property's capacity to pay back the financing without the assistance of the person. Other factors that affect an individual's eligibility for a hard money real estate loan include how much money he is in a position to put into a down payment, his past experience being a real estate investor, and price of similar, fairly recently sold homes nearby.

So should you come across a very good and worthwhile investment opportunity, feel comfortable knowing you'll have a hard money lender in Lancaster, able to lend you the cash that you need. Submit the form on this page or call us and let's discuss the property you have in mind.