An outstanding deal on a fix and flip opportunity in a very good area of the city all of a sudden shows up — seems too good to be true. Everybody knows that expert professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can readily earn an average profit of forty to fifty thousand dollars on their flips. Undoubtedly, you also realize that their success are due to the simple fact that they are industry experts, are well versed in hard money loans, they understand market trends quite well and in addition, they are good at working a public auction for getting an appropriate price. That said, you've likewise been developing your rehab and remodeling skills, have a very good licensed contractor arranged and are positive that you're capable of doing a bang up job on this house.

But where precisely do real estate investors find money? A typical lender, for instance a bank, takes a minimum of one to two months to consent to the loan and deliver the capital. Given that home owners would prefer a fast closing, you may have to start seeking out some other funding alternatives.

As well as this, if you have an unfavorable credit situation or don't receive a regular income source, it is usually more challenging to obtain a bank loan, with the tighter loan guidelines banks have put in place in recent times. So will a lack of financing keep you from sticking with your aspirations? Certainly not, on the grounds that you could always use the Laurel hard money loan approach to finance your flipping project.

A hard money home loan in Laurel gives you what is regarded as vital to most real estate sales — a quick closing of just a 2-3 weeks and oftentimes less. Besides that, hard money lenders can approve funding up to 70% LTV of the property's valuation, as established by a qualified third-party evaluator. Some individuals regard hard money real estate loans to be higher in price than regular financing, since the interest rates for these loans often start out at 10%. But in reality, the rate of interest is not as relevant for these loans, given that they are not long-term financing. Short-term loans of a couple months to a handful of years are best understood in terms of cost of capital, similar to all other expenses related to a project. And once you have sold the property or home, recovering this expense is identical to recouping the expense for all the kitchen and bath upgrades you did.

Moreover, even an individual with low credit can still qualify for a hard money mortgage. The person's credit score is not the lone deciding factor for Laurel hard money lenders — in addition, they analyze the property, how much it is worth, where it is located, and its ability to earn back their financial commitment if everything does not go as planned. How much of their own money an individual can put upfront towards the house, how much experience he has in real estate investing, and selling price of comparative properties in the vicinity are various other factors that go into analyzing an applicant's suitability for a hard money real estate loan.

So in case you have stumbled on a really good real estate opportunity with a significant chance of returns, you've also discovered a hard money lender in Laurel that is willing to finance your flipping venture. Complete the form or call us to talk about the property or properties you have in mind.