Suppose that you've stumbled upon this truly good deal for a fix and flip property located in a terrific location, and you're either a skilled real estate investor or a newbie who really wants to try his hand at flipping. Everyone knows that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping program, Fix or Flop, are able to turn an average profit margin of forty to fifty thousand dollars on their home projects. And yes, they are aided in a major way due to their professional knowledge, auction skills and knowledge of hard money loans. Still, your rehab and remodeling knowledge isn't bad either — in any case, you've already found an ideal licensed contractor to handle this project.

But how can real estate investors find funds? If you opt for a normal bank loan, you will wind up waiting roughly one to two months up until the time the mortgage loan is authorized and your money is readily available. With the home owners looking for a fast closing, that does not appear like a good option to you at all.

To add to it, banks have already been tightening their lending requirements as of late, rendering it more hard for people to obtain a regular loan if their credit score is not perfect or he does not possess a regular salaried profession. So will inadequate funds keep you from sticking to your ambitions? Never, on the grounds that you could always use the West York hard money loan approach to finance your rehab project.

A hard money home loan in West York can provide what's regarded as vital to most real estate transactions — a fast closing of only a few weeks and sometimes even less. Besides that, hard money lenders can do loans up to 70% LTV of the property's valuation, as assessed by a qualified third-party evaluation. With lending rates starting out near 10%, hard money real estate loans may appear, at first glance, to be more costly compared to conventional bank financing. But when you understand these loans are not long-term loans, the interest rate may be misleading. Short-term loans of a couple of months to a handful of years are best understood as cost of capital, much like all other expenditures associated with a project. After you rehab and unload the property, recuperating this expense is no different than recuperating the expense for stainless steel appliances you put in the place.

Besides, hard money mortgages are not difficult to qualify for, whether or not you posses a low credit score. West York hard money lenders don't take on a loan solely judging by the borrower's credit score — rather they will look at the property, where it is located and what it is worth, and the home's ability to pay back the loan by itself. The total amount that an individual can put down in advance for the property, how much experience he has in real estate investing, and price range of comparative properties in the same vicinity are other details that go into ascertaining a borrower's eligibility for a hard money real estate loan.

Finding a hard money lender in West York to finance your flipping business is not difficult, provided that the opportunity that lies before you is promising and possesses a good potential for returns. Fill out the contact form or give us a call and let's discuss the project you have in mind.