You discovered this amazing possibility for fixing and flipping this nice out of date property in a good area and it seems like the one you've been anticipating for quite a while. You've probably heard that competent property flippers, like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit margin close to $40,000 – $50,000. Of course, you also understand that their success can be credited to the simple fact that they are professionals, are well versed in hard money loans, they understand the marketplace quite well and furthermore, they know how to work a public auction for getting a reasonable deal. Having said that, you have also been cultivating your rehab and remodeling knowledge, have a very good licensed contractor ready for the project and are certain that you will be able to do an impressive job on this home.

But how can you find the needed capital for home flipping? A traditional lending institution, like for example a bank, takes no less than one to two months to authorize the financing and hand over the money. With the sellers looking for a fast closing, that doesn't appear to be a great idea to you whatsoever.

With banks bringing in more challenging loan guidelines in the past several years, it's become tougher for a self-employed individual to obtain a home loan, especially if his credit situation is not optimal. So should you admit defeat and forego your ambition to venture off into the real estate market? Never, considering that you could always go the Scranton hard money loan route to pay for your flipping project.

A hard money home loan in Scranton gives you what's considered imperative to many real estate transactions — a fast closing of just a few weeks and at many times less. In addition, the LTV value can go up to 70% of the property value, as determined by a competent appraiser. With loan rates starting near 10%, hard money real estate loans might seem, at first, to be higher priced when compared with traditional bank financing. But if you consider these are not long-term mortgage loans, the rate of interest may be misleading. The price of such short-term loans should be evaluated on par with any other expense that you would need to meet for the project. Right after you rehab and resell the house, recouping this expense is no different than recouping the one for home appliances you installed in the home.

Apart from this, hard money mortgages are not difficult to qualify for, even when you have poor credit. Rather than focusing strictly on the person's credit score or income, Scranton hard money lenders, who may be a private company or an individual person, say yes to a loan as a result of assessing the property value, ease of marketability, where it is located, and the likelihood of recouping their money in the event of foreclosure. On top of this, if the borrower can demonstrate past experience in similar real estate endeavors, can place down money for the down payment, and the cost of comparable properties in the vicinity works to his benefit, he stands a good shot of being eligible to obtain a hard money real estate loan.

So should you run into a really good and profitable investment opportunity, rest assured you'll have a hard money lender in Scranton, ready to lend you the money you may need. Submit the contact form or get in touch with us via phone to talk about your project.