You discovered this outstanding opportunity to renovate and flip this nice out of date house in a fantastic part of town and it looks a lot like the deal you have been expecting for quite some time. You've heard that competent house flippers, like the husband and wife on HGTV's Flip or Flop, turn an impressive average profit margin of around $40,000 – $50,000. Of course, you also recognize that their results can be attributed to the simple fact that they're professionals, are knowledgeable in hard money loans, they understand the marketplace really well and furthermore, they know how to work an auction to purchase their properties at a good price. Nonetheless, your rehab and remodeling skills aren't that bad either — in any case, you have already located the right general contractor to start this home.

But how exactly do real estate investors find financing? Should you apply for a regular loan from the bank, you will end up waiting somewhere around one to two months before the mortgage is authorized and the funds are available. Considering that the home owners are seeking a fast closing, that does not seem like a good option to you whatsoever.

To add to it, banks have been tightening up their lending standards in recent times, which makes it difficult for people to get a conventional loan if their credit rating is not perfect or he does not possess a regular salaried profession. So should you stop trying and abandon your desire to embark into fix and flips? Definitely not, given that you always have the Traverse City hard money loan alternative.

A hard money home loan in Traverse City offers you what's regarded as essential to many real estate deals — a fast closing of only a 2-3 weeks and at times less. Further, loan amounts can be done for up to 70% loan-to-value of the "as is" house's valuation, as deemed by a professional appraiser. With the rates starting off around 10%, hard money real estate loans may appear, initially, to be more expensive when compared with traditional bank loans. But usually, the rate of interest isn't as relevant for these loans, because they are not long-term financing. Short-term loans of several months to a handful of years are best approached in terms of cost of capital, similar to every other expenditure in connection with a project. Right after you remodel and resell the house, recouping this expense is the same as recovering the cost of the stainless steel appliances you installed in the home.

Besides, hard money mortgages are not difficult to qualify for, even when you posses poor credit. The person's credit score isn't the primary deciding factor for Traverse City hard money lenders — in addition, they evaluate the property, its market valuation, where it is located, and its capability to bring back their financial commitment if things should not go as planned. Additional variables that impact a borrower's approval for a hard money real estate loan include the amount he is in a position to put towards a down payment, his prior experience as a real estate investor, and price of comparative, recently sold homes in the vicinity.

Searching for a hard money lender in Traverse City to fund your renovation project is not very challenging, as long as the opportunity that lies ahead of you is promising and possesses the right prospect for returns. Complete the contact form or get in touch with us via phone and let's discuss your property or properties.