A remarkable deal on a fix and flip opportunity in a very good subdivision all of a sudden shows up — sounds too good to be true. Expert home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a gain of forty to fifty grand for the majority of homes. Of course, you also understand that their successes are due to the simple fact that they are industry experts, are proficient in hard money loans, they understand the marketplace really well and furthermore, they are good at working an auction for getting an appropriate deal. Having said that, you've also been brushing up your rehab and renovation knowledge, have a general contractor ready to go and are positive that you can do a stellar job for this property.

But how do you get the needed capital for home flipping? For those who approach a regular lending institution, such as a bank for funding, it's very likely going to take, at a minimum, 4-8 weeks for your approval to be completed and the funds to be distributed. Given that sellers would rather have a fast closing, you might want to start looking for other financing options.

To add to it, banks have been tightening up their lending standards as of late, rendering it more difficult for someone to receive a regular loan if their credit situation is not perfect or he does not have a consistent salaried profession. So does that leave you with no other option, but to abandon your dream to venture into home flipping? Not at all, particularly while Lyons hard money loans can help you accomplish many amazing things in the real estate world.

If you apply for a hard money home loan in Lyons, you're going to get what's probably most important to real estate offers throughout the country — a fast closing of roughly 2 weeks. What's more, the LTV value can go up to 70% of the home value, as determined by a competent appraiser. Some individuals believe hard money real estate loans to be more costly than regular loans, because the lending rates for these loans normally start out at 10%. But in reality, the interest rate is not as pertinent for these loans, given that they are not long-term financing. When it comes to short-term loans of several years or less, you should look at them just like you would other expenditures for the project. Right after you fix up and resell the house, recovering this expense is just like recuperating the cost of the stainless steel appliances you put in the house.

Apart from this, hard money mortgages are easy qualifying, regardless if you posses below-average credit. As an alternative for focusing exclusively on the person's credit score or source of income, Lyons hard money lenders, who could be a private company or an individual person, approve a loan after evaluating the home value, how easy it will be to market, where it is located, and the probability of recovering their money in case of foreclosure. The amount that an individual can put upfront towards the house, how much practical experience he has in real estate investing, and price range of equivalent homes in the same neighborhood are other details that go into ascertaining an individual's qualification for a hard money real estate loan.

So any time you come across an outstanding and lucrative flipping opportunity, rest assured you'll have a hard money lender in Lyons, prepared to loan you the money you need. Submit the contact form on this page or call us to discuss the property or properties you have in mind.