There is this outstanding opportunity to fix and flip this wonderful out of date house in a good part of town and it seems a lot like the one you have been eagerly waiting on for quite a while. Expert house flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are able to generate a gain of $40-$50k for the majority of homes. And yes, they are helped in a major way via their professional knowledge, auction abilities and understanding of hard money loans. Nonetheless, your rehab and renovation skills aren't bad either — besides, you've already identified a suitable licensed contractor to take on this job.

But how do real estate investors obtain funding? For those who opt for a normal loan via a bank, you will wind up waiting roughly 4-8 weeks before the mortgage loan is approved and the funds are readily available. Since the majority of home owners would prefer a fast closing, it may be best to start looking for some other financing options.

To add to it, banks have already been tightening their lending standards as of late, which makes it challenging for someone to receive an ordinary home loan if their credit rating is not flawless or he does not possess a regular salaried occupation. So must you admit defeat and abandon your desire to venture into fix and flips? Certainly not, due to the fact you can always use the Shawnee hard money loan approach to fund your rehab project.

A hard money home loan in Shawnee provides you with what is possibly most desired by real estate investors — a fast closing time of as few as two weeks. Also, hard money lenders can approve lending up to 70% LTV of the property or home value, as determined by a qualified third-party appraiser. Some people believe hard money real estate loans to be more costly than ordinary financing, because the interest rates for such loans often start out at 10%. But the time frames of these loans tend to be quite short, which makes the rate much less significant. Short-term loans of a couple months to a few years are best looked at as cost of capital, very much like every other expense related to a project. And when you've finally flipped the home, recovering this expense is identical to recuperating the expense for the bathroom or other improvements you did.

Furthermore, even individuals with low credit can still qualify for a hard money mortgage. The applicant's credit score will not be the lone deciding factor for Shawnee hard money lenders — they also examine the property, how much it is worth, its location, and its potential to bring back their financial commitment if things should not work out as intended. The total amount that a person can put down in advance towards the property or home, how much practical experience he has in real estate investing, and price range of comparative homes in the same vicinity are additional factors that go into establishing an applicant's suitability for a hard money real estate loan.

So if you have stumbled on an excellent real estate opportunity with a huge potential for returns, you've also found yourself a hard money lender in Shawnee who is ready to provide financing for your flipping projects. Enter your info into the form on this page or give us a call to discuss your property.