An incredible bargain on a fix and flip property in a good subdivision shows up out of the blue — sounds too good to be true. Expert house flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a profit of forty to fifty grand on a regular basis. Of course, you also know that their great results are due to the fact that they're experts, are well versed in hard money loans, they know the market quite well and in addition, they are good at working an auction to buy their houses at a good deal. Nonetheless, your rehab and renovation skills aren't bad either — in any case, you've already located an ideal building contractor to tackle this home.

But how exactly can real estate investors get financing? In the event you opt for a conventional loan via a bank, you will have to wait roughly 1 to 2 months up until the loan is approved and your money is ready to go. Because most home owners prefer a fast closing, you might want to start seeking out some other financing options.

On top of this, banks have already been tightening their lending standards in recent years, making it tough for someone to receive a typical home loan if their credit circumstances are not flawless or he doesn't have a consistent salaried profession. So does that mean you are without an option, but to drop your ambition of getting into flipping? Under no circumstances, especially while Prospect Park hard money loans can help you realize many amazing things in real estate.

A hard money home loan in Prospect Park offers what is deemed imperative to many real estate sales — a very fast closing of only a 2-3 weeks and oftentimes less. What's more, the LTV value can reach up to 70% of the place's valuation, as estimated by a certified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be higher in price than bank lending products. But in reality, the rate of interest isn't as useful a measure for these loans, because they will never be long-term financing. The price of such short-term loans ought to be evaluated much like any other expenditure that you would need to meet for the project. Right after you remodel and resell the home, recouping this expense is the same as recouping the cost of the home appliances you placed into the place.

Also, it's simple to qualify for a hard money mortgage, even if your credit situation is not that superb. The person's credit score isn't the sole determining factor for Prospect Park hard money lenders — they also look at the piece of real estate, its market value, where it is located, and its capability to earn back their financial commitment if things should not work out as intended. Several other criteria that affect a person's acceptance for a hard money real estate loan can include the amount he can put towards a down payment, his prior experience as a real estate investor, and selling price of comparative, recently sold residences in the vicinity.

If you happen to have stumbled upon a really good fixer-upper with a significant chance of returns, you've also found yourself a hard money lender in Prospect Park that is willing to provide funding for your rehab projects. Fill out the form on this page or call us to discuss the property you have in mind.