Imagine you've come across this excellent bargain for a fix and flip property in a great neighborhood, and you're either a seasoned real estate investor or a newbie who hopes to try his hand at flipping. You've probably heard that competent property flippers, much like the married couple on HGTV's Flip or Flop, enjoy an impressive average return near forty to fifty thousand dollars. Without question, their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction talents have had a big part in their successes. With that being said, you've recently been developing your rehab and remodeling knowledge, have a licensed contractor arranged and are certain that you're capable of doing a great job for this house.

But how do you obtain the needed funding for flipping? When you go after a normal loan from the bank, you will need to wait somewhere around 30-60 days until the financing is authorized and the funds are readily available. So if you happen to be wishing for a fast closing, you must understand or know that this could cost you a couple of weeks, making you miss out on the sale.

Furthermore, if you have an unfavorable credit rating or don't have a routine source of income, it may be more challenging to qualify for a bank loan, with the stricter loan guidelines banks have put in place of late. So do you have to give up and forego your dream to venture into the real estate market? Not at all, especially while Vernon hard money loans will assist you to realize many amazing things in the real estate market.

A hard money home loan in Vernon gives you what is viewed as vital to most real estate deals — a fast closing of only a couple of weeks and sometimes even less. In addition, the LTV value can go up to 70% of the property value, as evaluated by a competent appraiser. A number of people believe hard money real estate loans to be more expensive than ordinary loans, considering lending rates for such loans normally start off at 10%. But once you consider these loans are not long-term home loans, the rate of interest tends to be misleading. Short-term loans of several months to a few years are best looked at in terms of cost of capital, similar to any other financial outlay associated with a project. After you renovate and sell off the house, recouping this expense is the same as recovering the one for new kitchen appliances you put in the house.

What's more, it's easy to obtain a hard money mortgage, even when your credit situation is not that superb. The person's credit score is not the exclusive deciding factor for Vernon hard money lenders — they also analyze the house, its market value, its location, and its capacity to earn back their financial commitment if things should not work out as planned. Adding to that, if the applicant can demonstrate prior experience in equivalent real estate ventures, can put down money towards the down payment, and the value of comparative homes in the vicinity works in his favor, he has a very good shot of qualifying to obtain a hard money real estate loan.

If you happen to have stumbled upon a really great real estate opportunity with a high potential for returns, you have also found yourself a hard money lender in Vernon that is ready to finance your fix and flip venture. Submit the contact form or give us a call and let's discuss the project you have in mind.