There's this outstanding possibility for fixing and flipping this nice old condo in a fantastic location and it looks a lot like the deal you've been eagerly waiting on for quite some time. Most folks know that capable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can make an average profit margin of $40,000 to $50,000 when they flip properties. It's fair to say their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction skills have been large factors to their success. Still, your rehab and renovation knowledge isn't bad either — in any case, you have already identified a suitable building contractor to start this job.

But where do you obtain the necessary funding for flipping? A standard lender, for instance a bank, takes at a minimum 1-2 months to authorize the financing and hand over the funds. Thus if you happen to be looking for a fast closing, you must understand or know that this will cost you a couple weeks, causing you to lose out on the sale.

With banks adding tougher loan requirements in the recent past, it has become harder for a self-employed person to find a mortgage loan, particularly if his credit circumstances are not flawless. So must you give up and abandon your desire to get into real estate? By no means, particularly when South Beloit hard money loans will assist you to accomplish many amazing things in the real estate market.

A hard money home loan in South Beloit gives you what's considered imperative to most real estate deals — a fast closing of just a few weeks and at many times even less. Further, financing is made up to 70% loan-to-value of the "as is" home value, as deemed by a qualified appraiser. With the interest rates starting off around 10%, hard money real estate loans may seem, initially, to be more costly when compared with conventional bank lending products. But the lengths of these loans tend to be quite short, which makes the rate far less important. Short-term loans of several months to a handful of years are best thought of in terms of cost of capital, very much like every other financial outlay in connection with a project. And when you have sold the property, recouping this expense is comparable to recuperating the expense for all the bathroom improvements you did.

Furthermore, even a person with poor credit can easily qualify for a hard money mortgage. South Beloit hard money lenders don't take on a loan solely based on the borrower's credit score — rather they also examine the property, its value and location, and the property's capability to pay back the loan on its own. Several other criteria that influence a customer's acceptance for a hard money real estate loan can include what amount of money he is in a position to put towards a down payment, his prior experience being a real estate investor, and selling price of similar, fairly recently sold homes in the area.

If you happen to have found a really good home to flip with a high probability of returns, you have also stumbled upon a hard money lender in South Beloit who is prepared to fund your rehab venture. Submit the contact form or get in touch with us via phone to talk about your property or properties.