A fabulous deal on a fix and flip property located in an excellent neighborhood shows up out of the blue — sounds too good to be true. Most folks know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can readily make an average profit of forty to fifty thousand dollars in their rehab business. Without question, their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction skills have been major factors to their success. Having said that, you've likewise been brushing up your rehab and renovation skills, have a very good contractor ready for the project and are certain that you're capable of doing a great job on this property.

But how exactly can real estate investors get money? In the event you go after a normal loan from the bank, you will have to wait approximately 4-8 weeks until the mortgage is authorized and the funds are readily available. So if you are wishing for a fast closing, you need to realize that this will cost you a few weeks, causing you to lose out on the opportunity.

On top of this, banks have been tightening their lending requirements in recent times, which makes it tough for someone to obtain a regular loan if their credit situation is not flawless or he does not possess a consistent salaried occupation. So does that leave you with no option, but to drop your aspiration of venturing into flipping? By no means, particularly while South Haven hard money loans enable you to accomplish many amazing things in the real estate market.

A hard money home loan in South Haven can provide what is viewed as crucial to most real estate sales — a quick closing of just a few weeks and more often than not even less. In addition, the LTV value can reach up to 70% of the place's valuation, as determined by a certified appraiser. With lending rates starting out around 10%, hard money real estate loans may appear, initially, to be higher priced when compared with conventional bank loans. But in reality, the interest rate isn't as pertinent for these loans, because they are not long-term loans. The price tag on such short-term loans ought to be looked at much like any other expenditure that you would need to meet for the project. Once you have sold the property and have made a good financial gain, you'll be able to recoup this expense from the property — the same as recuperating the money spent on the brand-new kitchen appliances that you installed.

Furthermore, even a person with poor credit can easily qualify for a hard money mortgage. South Haven hard money lenders do not authorize a loan exclusively on the basis of the applicant's credit score — instead they additionally assess the property, its location and value, and the property's ability to pay back the loan on its own. Several other factors that impact an applicant's approval for a hard money real estate loan can include how much he is in a position to put into a down payment, his previous experience being a real estate investor, and price range of comparable, recently sold residences nearby.

So if you have found a really great fixer-upper with a high prospect of returns, you have also discovered a hard money lender in South Haven that's happy to finance your fix and flip ventures. Enter your info into the form or give us a call and let's discuss your property or properties.