Suppose you've come across this excellent bargain for a fix and flip property you found in a terrific location, and you're either an experienced real estate investor or a newbie who is looking to try out flipping houses. Professional home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a gain of $40-$50k for the majority of homes. And sure, they are helped in a big way due to their professional experience, auction skills and understanding of hard money loans. On the other hand, you're assured that your first class rehab and remodeling talents can help you do a great job on this house — additionally, you have already lined up one of the best contractors in the area to take on this job.

But funding can be a separate issue altogether. In the event you go after an ordinary loan from the bank, you will need to wait somewhere around 4-8 weeks up until the time the mortgage is authorized and the funds are readily available. With the sellers wanting a fast closing, that does not appear to be a good idea to you in the slightest.

As well as this, should you have a sub-optimal credit rating or do not have a consistent income source, it is normally harder for you to obtain bank financing, seeing the more stringent loan criteria banks have introduced of late. So does that leave you with no other option, but to abandon your dream to venture into rehabbing? Certainly not, due to the fact you could always use the Union City hard money loan approach to finance your home renovating project.

A hard money home loan in Union City boasts what is probably most sought after by real estate investors — a fast closing time of as little as a few weeks. Plus, the LTV value can go up to 70% of the place's valuation, as estimated by a credentialed appraiser. With lending rates starting near 10%, hard money real estate loans might appear, at first glance, to be more costly compared to traditional bank loans. But the lengths of these loans tend to be quite short, which means the interest rate is far less significant. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, similar to every other expense involved with a project. Once you've resold the property or home and have made a good gain, you're able to recover this expense from the property or home — the same as recovering the cost of brand-new home appliances that you've installed.

Apart from this, hard money mortgages are not difficult to qualify for, even if you have got a low credit rating. Union City hard money lenders do not authorize a loan exclusively on the basis of the person's credit score — rather they additionally evaluate the home, its valuation and location, and the home's capability to pay back the loan by itself. How much an applicant can put upfront towards the home, his real estate experience, and price range of comparable homes in the area are various other factors that go into analyzing a borrower's qualification for a hard money real estate loan.

Finding a hard money lender in Union City to fund your fix and flip endeavor is not difficult, provided that the opportunity in front of you is promising and offers a strong potential for returns. Enter your info into the contact form or give us a call to discuss your property.