A fabulous buy on a fix and flip opportunity in a very good neighborhood suddenly shows up — seems too good to be true. Expert home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of hauling in a gain of forty to fifty grand for the majority of homes. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction skills have played an important part in their results. On the other hand, you're convinced that your superb rehab and renovation talents will assist you to do a great job for this project — what's more, you already have arranged to have one of the most recommended contractors in town to handle the project.

But funding is a different problem entirely. In the event you approach a regular lending institution, much like a bank for a loan, it's very likely going to take no less than thirty to sixty days for the acceptance to be completed and the money to be dispersed. So if you're looking for a fast closing, you need to be aware that this could cost you a few weeks, causing you to miss out on the house.

Furthermore, for those who have an unfavorable credit score or don't have a routine source of income, it may be more challenging for you to qualify for bank financing, seeing the more stringent loan guidelines banks have put in place in recent times. So does this leave you with no option, but to give up your dream of venturing into home renovating? By no means, particularly when Russellville hard money loans will assist you to realize great things in the real estate world.

A hard money home loan in Russellville provides what is viewed as essential to many real estate sales — a quick closing of just a few weeks and at many times even less. In addition, the LTV value can go up to 70% of the home's valuation, as estimated by a certified appraiser. A number of people consider hard money real estate loans to be more pricey than regular financing, considering interest rates for these loans typically start at 10%. But in reality, the rate of interest isn't as relevant for these loans, given that they aren't long-term loans. The price tag on such short-term loans ought to be considered on par with any other expense that you might encounter during the project. Once you've resold the property and have made a good financial gain, you'll be able to recover this expense from the property or home — similar to recuperating the money necessary for the brand-new home appliances that you've put in.

Furthermore, even someone with poor credit can still qualify for a hard money mortgage. Russellville hard money lenders don't take on a loan exclusively on the basis of the customer's credit score — rather they will assess the property, its location and value, and the property's capability to pay back the loan independent of the person. Other factors that impact an individual's eligibility for a hard money real estate loan can include the amount he can put into a down payment, his past experience as a real estate investor, and price range of similar, fairly recently sold homes in the neighborhood.

So if you have found a wonderful real estate opportunity with a huge prospect of returns, you have also found yourself a hard money lender in Russellville that's happy to provide financing for your fix and flip project. Fill out the form or give us a call to discuss your property.