Suppose you've come across this truly good bargain for a fix and flip property located in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Many people know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can readily earn a typical profit margin of $40,000 to $50,000 on their flips. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have played an important role in their results. With that being said, you've also been cultivating your rehab and renovation skills, have got a contractor lined up and are confident that you can do a great job for this house.

But capital can be a separate problem entirely. A traditional lending institution, like for example a bank, takes at the very least 1 to 2 months to authorize the financing and release the capital. So if you're anticipating a fast closing, it's important for you to realize that this will set you back by a couple of weeks, causing you to miss out on the opportunity.

With banks establishing more challenging loan guidelines in recent years, it is now more difficult for a self-employed individual to find a mortgage loan, especially if his credit situation is not perfect. So does that leave you with no other option, but to abandon your dream of venturing into flipping? Not at all, especially while Olean, New York hard money loans will assist you to accomplish many amazing things in the real estate world.

A hard money home loan in Olean offers what is viewed as imperative to many real estate deals — a quick closing of just a 2-3 weeks and sometimes even less. Also, hard money lenders will often consent to loans up to 70% LTV of the home value, as calculated by a professional third-party evaluation. Some individuals believe hard money real estate loans to be costlier than ordinary loans, considering lending rates for these loans normally start off at 10%. But the lengths of these loans are quite shorter, which makes the interest rate far less significant. When it comes to short-term loans of 1 or 2 years or less, you should think about them just like you would other expenditures for the project. After you renovate and sell off the house, recouping this expense is the same as recouping the money you spent for new kitchen appliances you installed in the property.

Aside from that, hard money mortgages are easy qualifying, even in the event you have got below-average credit. Olean hard money lenders do not take on a loan exclusively according to the customer's credit score — rather they will evaluate the property, its value and location, and the property's capability to pay back the financing independent of the person. Additional criteria that affect a customer's approval for a hard money real estate loan can include how much money he can put into a down payment, his former experience as a real estate investor, and price of similar, fairly recently sold properties in the vicinity.

If you happen to have found a really great home to flip with a significant potential for returns, you've also stumbled upon a hard money lender in Olean who is happy to finance your flipping project. Complete the form on this page or call us to discuss the project you have in mind.