A fabulous buy on a fix and flip opportunity located in a nice subdivision shows up out of the blue — sounds too good to be true. You may have heard that professional home flippers, like the married couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin near forty to fifty thousand dollars. And without a doubt, they are helped in a big way due to their professional knowledge, auction expertise and familiarity with hard money loans. With that being said, you've also been cultivating your rehab and remodeling knowledge, have a contractor arranged and are positive that you can do an impressive job for this house.

But where can you find the needed funding for home flipping? If you opt for an ordinary loan via a bank, you will need to wait around approximately 4-8 weeks up until the time the money is authorized and your money is ready. Given that sellers favor a fast closing, you might have to begin looking for some other funding options.

Moreover, in case you have an unfavorable credit situation or don't have a regular income source, it can be harder for you to obtain a bank loan, with the tighter loan criteria banks have introduced as of late. So do you have to stop trying and abandon your dream to venture into the real estate market? Certainly not, seeing as you also have the Shorewood hard money loan alternative.

A hard money home loan in Shorewood provides you with what's probably most sought after by real estate investors — a very fast closing in as little as two weeks. Furthermore, hard money lenders can approve funding up to 70% LTV of the property or home value, as estimated by a credentialed third-party appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank financing. But usually, the interest rate isn't as useful a measure for these loans, given that they aren't long-term loans. The cost of such short-term loans ought to be evaluated on par with any other expenditure that you would have to meet pertaining to the project. After you rehab and sell the home, recouping this expense is the same as recovering the one for new kitchen appliances you put in the place.

Additionally, it's easy to obtain a hard money mortgage, even if your credit rating is not that extraordinary. Rather than focusing solely on the person's credit score or net income, Shorewood hard money lenders, who may be a private company or an individual, authorize a loan as a result of assessing the property value, its salability, its location, and the odds of getting back their money should they have to foreclose the loan. The total amount that an applicant can put upfront for the property, how much practical experience he has in real estate investing, and price range of equivalent properties in the same vicinity are other factors that go into ascertaining a person's qualification for a hard money real estate loan.

So any time you run into a very good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in Shorewood, ready to lend you the cash you may need. Submit the contact form or call us to talk about your property.