A fantastic deal on a fix and flip property located in a nice subdivision suddenly turns 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 series, Fix or Flop, are able to make a typical profit margin of forty to fifty thousand dollars when they rehab properties. It goes without saying their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction skills have had a big role in their results. On the other hand, you are certain that your impressive rehab and renovation talents will enable you to do a great job for this project — additionally, you've already lined up one of the premier contractors in the business to handle the job.

But how do real estate investors get funding? A traditional lending institution, like for example a bank, takes at a minimum 1-2 months to consent to the mortgage and hand over the monies. So if you are wishing for a fast closing, you have to understand that this could set you back by a couple weeks, making you lose out on the opportunity.

As well as this, should you have a sub-optimal credit situation or do not receive a routine income, it usually is more challenging to qualify for a bank loan, considering the tougher loan guidelines banks have issued recently. So must you give up and forego your aspiration to venture off into fix and flips? Certainly not, considering that you could always go the Muttontown hard money loan route to finance your rehab project.

If you apply for a hard money home loan in Muttontown, you're going to get what is possibly most important to real estate offers throughout the country — a quick closing of about 2 weeks. Furthermore, hard money lenders can do funding up to 70% LTV of the property or home's valuation, as identified by a credentialed third-party appraiser. Some people believe hard money real estate loans to be higher in price than ordinary loans, considering lending rates for these loans typically start off at 10%. But the term lengths for these loans tend to be comparatively shorter, which means the rate is far less important. The price of such short-term loans should be evaluated much like every other expense that you would have to meet for the project. Right after you renovate and sell the property, recouping this expense is no different than recouping the one for home appliances you installed in the home.

Aside from that, hard money mortgages are easy qualifying, regardless if you have a bad credit rating. Instead of focusing only on the applicant's credit score or source of income, Muttontown hard money lenders, who could be a private company or an individual person, say yes to a loan after analyzing the property value, how easy it will be to market, its location, and the odds of recuperating their capital in case of foreclosure. On top of that, if the person can demonstrate past experience in equivalent real estate endeavors, can put down cash for a down payment, and the value of similar homes in the vicinity works in his favor, he has a good likelihood of qualifying to obtain a hard money real estate loan.

So if you have stumbled upon a wonderful home to flip with a high probability of returns, you have also discovered a hard money lender in Muttontown that's ready to provide financing for your fix and flip projects. Enter your info into the form on this page or call us to discuss the property you have in mind.