A fabulous buy on a fix and flip opportunity located in an excellent neighborhood all of a sudden shows up — sounds too good to be true. Expert property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are able to earn a gain of $40-$50k for the majority of homes. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have been major factors to their success. Still, your rehab and renovation skills aren't that bad either — in any case, you've already identified a good contractor to take on this project.

But where can real estate investors get funding? Should you approach a regular lending institution, much like a bank for financing, it's in all likelihood going to take, at the very least, 30-60 days for the approval to come through and your funds to be given out. Since the majority of home owners would rather have a fast closing, you may want to begin searching for some other funding options.

With banks establishing more challenging loan standards in the past several years, it is much harder for a self-employed person to find a home loan, especially when his credit circumstances are not optimal. So will a shortage of financing keep you from sticking to your dream? By no means, on the grounds that you can always go the Mineola hard money loan route to fund your rehab project.

A hard money home loan in Mineola gives you what is perhaps most important to real estate investors — a quick closing time period of as little as two weeks. Further, financing can be done for up to 70% loan-to-value of the "as is" property's valuation, as established by a qualified appraiser. Some individuals believe hard money real estate loans to be higher priced than standard financing, considering lending rates for such loans ordinarily start off at 10%. But if you appreciate that these are not long-term home loans, the rate of interest tends to be misleading. Short-term loans of a couple months to a few years are best understood as cost of capital, very much like all other expenses involved with a project. And once you have sold the house, recovering this expense is identical to recuperating the expense for all the bathroom upgrades you did.

Also, it is easy to obtain a hard money mortgage, even in the event your credit rating is not that impressive. The customer's credit score will not be the sole deciding factor for Mineola hard money lenders — they also analyze the piece of real estate, what is it valued at, where it is located, and its capability to return their investment if things should not go as planned. How much of their own money an individual can put upfront for the property or home, how much experience he has in real estate investing, and price range of comparable properties in the same vicinity are other details that go into establishing a person's eligibility for a hard money real estate loan.

So if you have stumbled upon a wonderful home to flip with a high probability of returns, you have also discovered a hard money lender in Mineola who is willing to provide financing for your rehab venture. Submit the contact form or give us a call to discuss your property or properties.