A remarkable bargain on a fix and flip property in an excellent area of the city suddenly turns up — sounds so good that it's difficult to believe. You've probably heard that competent house flippers, similar to the husband and wife on HGTV's Flip or Flop, have an impressive average return close to forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction skills have played a big role in their results. That said, you have recently been developing your rehab and remodeling skills, have got a licensed contractor ready to go and are confident that you're capable of doing a bang up job on this home.

But how do you get the needed capital for flipping? When you opt for a traditional bank loan, you will have to wait around somewhere around 4-8 weeks until eventually the mortgage loan is approved and your money is available. With all the sellers looking for a fast closing, that does not appear like a wise idea to you whatsoever.

As well as this, if you have a sub-optimal credit rating or do not receive a consistent income source, it is usually more difficult to obtain bank financing, with the stricter loan criteria banks have put in place recently. So will inadequate financing stop you from sticking to your dream? By no means, due to the fact you could always go the Mason City hard money loan route to pay for your flipping project.

If you decide to apply for a hard money home loan in Mason City, you're going to get what's perhaps most important to real estate transactions throughout the country — a fast closing of around 2 weeks. Furthermore, hard money lenders can approve lending up to 70% LTV of the property or home's valuation, as assessed by a licensed third-party evaluation. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as more costly than bank lending products. But the term lengths for these loans tend to be comparatively short, which makes the rate much less significant. Short-term loans of several months to a handful of years are best approached as cost of capital, much like any other expense associated with a project. Right after you fix up and unload the home, recouping this expense is just like recouping the one for new kitchen appliances you placed into the place.

Aside from that, hard money mortgages are not hard to qualify for, even if you have poor credit. The customer's credit score isn't the sole deciding factor for Mason City hard money lenders — additionally, they look at the property, how much it is worth, where it is located, and its potential to earn back their financial commitment if everything does not go as intended. Other variables that influence a customer's acceptance for a hard money real estate loan can include how much he can put into a down payment, his prior experience as a real estate investor, and price range of similar, fairly recently sold residences in the neighborhood.

So any time you run into a very good and profitable flipping opportunity, feel comfortable knowing you will have a hard money lender in Mason City, able to lend you the money that you need. Enter your info into the form or give us a call to talk about your project.