Suppose that you've run across this truly good bargain for a fix and flip property in an ideal neighborhood, and you're either a seasoned real estate investor or a first-timer who wants to try his hand at flipping. Professional house flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a gain of $40-$50k on average. And indeed, they are helped in a major way as a result of their professional know-how, auction skills and knowledge of hard money loans. Still, your rehab and remodeling skills aren't bad either — aside from that, you have already located a suitable building contractor to tackle the home.

But how can you get the needed funding for flipping? When you opt for a traditional bank loan, you will wind up waiting around roughly one to two months until the mortgage loan is authorized and your money is readily available. So if you happen to be anticipating a fast closing, it is important you understand or know that this could set you back by a few weeks, causing you to miss out on the home.

With banks establishing tougher loan criteria in recent times, it's become more challenging for a self-employed person to find a mortgage loan, especially when his credit situation is not flawless. So must you admit defeat and forego your dream to embark into real estate? Absolutely not, seeing as you always have the Lewistown hard money loan alternative.

A hard money home loan in Lewistown can provide what is considered essential to most real estate deals — a very fast closing of just a few weeks and more often than not less. And additionally, financing can be made up to 70% loan-to-value of the as-is house value, as calculated by a qualified appraiser. Some individuals regard hard money real estate loans to be more expensive than ordinary loans, since the interest rates for such loans ordinarily start at 10%. But in reality, the lending rate is not as useful a measure for these loans, given that they are not long-term financing. Short-term loans of a couple of months to a few years are best thought of as cost of capital, much like every other financial outlay related to a project. Right after you rehab and sell off the home, recouping this expense is just like recouping the one for home appliances you put in the house.

Apart from this, hard money mortgages are easy qualifying, whether or not you posses less-than-perfect credit. Lewistown hard money lenders do not authorize a loan strictly according to the applicant's credit score — rather they will assess the home, where it is located and what it is worth, and the property's capability to pay back the financing by itself. Adding to that, if the person can demonstrate past experience in comparable real estate projects, can put down money for a down payment, and the cost of comparative homes in the neighborhood works in his favor, he has got a really good shot of qualifying for a hard money real estate loan.

So in case you have stumbled on an excellent real estate opportunity with a high prospect of returns, you've also stumbled upon a hard money lender in Lewistown that's happy to provide funding for your flipping ventures. Enter your info into the contact form or call us to discuss your property or properties.