A fabulous deal on a fix and flip property in a nice subdivision suddenly shows up — sounds so good that it's difficult to believe. Professional residential home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a profit of forty to fifty grand on a regular basis. Naturally, you also understand that their results are attributed to the fact that they are professionals, are well versed in hard money loans, they understand the market really well and in addition, they know how to work a public auction to buy their properties at an appropriate price. Nevertheless, you're convinced that your superb rehab and remodeling talents will assist you to do a superb job on this home — additionally, you've already lined up one of the premier building contractors in the business to work on the job.

But capital can be a separate problem altogether. A traditional lending institution, like for example a bank, takes a minimum of one to two months to authorize the mortgage and release the cash. Thus if you are wishing for a fast closing, it's important for you to understand or know that this will cost you a few weeks, causing you to miss out on the opportunity.

Furthermore, should you have a sub-optimal credit rating or do not receive a routine source of income, it is normally harder for you to be eligible for a bank financing, with the tougher loan requirements banks have issued recently. So should you give up and forego your dream to venture into real estate? Definitely not, given that you always have the Tuscola hard money loan option.

A hard money home loan in Tuscola offers what's deemed imperative to many real estate transactions — a quick closing of just a 2-3 weeks and oftentimes less. What's more, the LTV value can go up to 70% of the home's valuation, as evaluated by a competent appraiser. Some people believe hard money real estate loans to be higher in price than regular loans, considering interest rates of such loans generally start at 10%. But usually, the rate of interest is not as pertinent for these loans, given that they are not long-term financing. The cost of such short-term loans should be viewed on par with every other cost that you will encounter during the project. Once you have sold the property and have made a successful profit, you'll be able to reclaim this expense from the house — much like recouping the money spent on the brand-new home appliances that you installed.

Apart from this, hard money mortgages are easy qualifying, even in the event you have got a low credit rating. The borrower's credit score is not the single determining factor for Tuscola hard money lenders — additionally, they look at the home, how much it is worth, where it is located, and its potential to return their investment if everything does not go as intended. Adding to that, if the person can demonstrate past experience in similar real estate endeavors, can place down cash towards a down payment, and the value of similar houses in the vicinity works in his favor, he has a very good shot of being approved for a hard money real estate loan.

If you happen to have stumbled upon a really great real estate opportunity with a huge chance of returns, you have also discovered a hard money lender in Tuscola who's happy to finance your rehab project. Submit the form or call us to talk about your project.