An outstanding deal on a fix and flip opportunity located in a good subdivision suddenly shows up — seems too good to be true. Everybody knows that capable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, can readily generate a typical profit of forty to fifty thousand dollars when they rehab properties. And without a doubt, they are helped in a major way by their professional know-how, auction expertise and understanding of hard money loans. Having said that, you've likewise been brushing up your rehab and remodeling knowledge, have got a contractor arranged and are certain that you're capable of doing a bang up job for this house.

But where can real estate investors get money? A standard lender, say for example a bank, takes no less than 1 to 2 months to approve the loan and deliver the cash. Considering that all the home owners are seeking a fast closing, that does not seem like a great idea to you in the slightest.

With banks bringing in harder loan standards in the past several years, it is tougher for a self-employed individual to get a mortgage loan, particularly if his credit rating is not flawless. So should you give up and forego your aspiration to venture into fix and flips? By no means, particularly while Plum hard money loans enable you to achieve great things in the real estate world.

A hard money home loan in Plum provides what is deemed essential to most real estate deals — a quick closing of just a couple of weeks and sometimes even less. What's more, the LTV value can reach up to 70% of the property value, as estimated by a credentialed appraiser. A number of people consider hard money real estate loans to be more expensive than standard financing, since the lending rates of such loans ordinarily start off at 10%. But usually, the rate of interest is not as useful a measure for these loans, given that they are not long-term loans. Short-term loans of a couple months to a few years are best understood in terms of cost of capital, similar to every other expenditure involved with a project. And once you've finally flipped the property, recovering this expense is identical to recouping the expense for the bathroom or other updates you did.

Additionally, it is simple to obtain a hard money mortgage, even in the event your credit situation is not that superb. Plum hard money lenders don't authorize a loan exclusively according to the borrower's credit score — rather they additionally look at the property, its location and value, and the home's ability to pay back the financing by itself. Additional criteria that affect a customer's acceptance for a hard money real estate loan include how much money he is able to put into a down payment, his prior experience being a real estate investor, and price of comparable, just recently sold homes in the area.

So should you come across a good and lucrative investment opportunity, rest assured you will have a hard money lender in Plum, willing to lend you the money you need. Complete the form or give us a call to discuss your property.