Suppose you've run into this truly good bargain on a fix and flip property you found in a terrific neighborhood, and you are either an experienced real estate investor or a newbie who wants to try his hand at flipping. You've probably heard that professional house flippers, much like the married couple on HGTV's Flip or Flop, enjoy an impressive average return close to forty to fifty thousand dollars. And indeed, they are helped in a major way due to their professional experience, auction expertise and knowledge of hard money loans. That said, you've likewise been developing your rehab and remodeling skills, have a very good licensed contractor ready to go and are certain that you will be able to do an impressive job for this house.

But how do real estate investors find financing? For those who get in touch with a regular lending institution, such as a bank for a mortgage loan, it can take, at a minimum, 30-60 days for the approval to come through and your money to be accessible. So if you're wishing for a fast closing, it's important for you to be aware that this could set you back by a couple of weeks, making you miss out on the opportunity.

On top of this, banks have already been tightening up their lending standards as of late, rendering it more difficult for a person to get a regular loan if their credit score is not perfect or he does not possess a regular salaried profession. So does this leave you with no option, but to abandon your aspiration of venturing into the fix and flip business? Under no circumstances, particularly while North East hard money loans can help you achieve many amazing things in the real estate market.

When you opt for a hard money home loan in North East, you have access to what's probably most vital to real estate purchases throughout the country — a very fast closing of roughly fourteen days. Besides that, hard money lenders are able to do loans up to 70% LTV of the property value, as estimated by a credentialed third-party evaluation. At first, hard money real estate loans, with starting interest rates of 10%, appear to be higher priced than bank loans. But usually, the lending rate is not as relevant for these loans, since they are not long-term financing. Short-term loans of several months to a few years are best looked at in terms of cost of capital, similar to all other expenses in connection with a project. And as soon as you've finally turned the property or home, recuperating this expense is the exact same as recuperating the expense for all the bathroom or other upgrades you performed.

Additionally, it isn't difficult to qualify for a hard money mortgage, regardless if your credit situation is not that extraordinary. The borrower's credit score isn't the exclusive deciding factor for North East hard money lenders — in addition, they consider the property, its market value, its location, and its capability to bring back their financial commitment if everything does not go as planned. The amount that an individual can put upfront for the property, how much experience he has in real estate investing, and price range of comparative homes in the same vicinity are additional details that go into determining an applicant's suitability for a hard money real estate loan.

So if you have stumbled upon an excellent fixer-upper with a high chance of returns, you've also found yourself a hard money lender in North East who is prepared to fund your rehab ventures. Submit the form on this page or give us a call to talk about the project you have in mind.