You discovered this amazing opportunity to fix and flip this nice out of date house in a good location and it looks like the deal you have been wanting for quite some time. Expert home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a profit of $40-$50k on most projects. 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. With that being said, you've recently been developing your rehab and renovation skills, have a very good licensed contractor arranged and are positive that you will be able to do an impressive job on this home.

But funding is a different issue entirely. A conventional lender, for instance a bank, takes at least 1 to 2 months to authorize the financing and release the funds. Since most home owners would rather have a fast closing, you may want to start seeking out other financing alternatives.

To add to it, banks have already been tightening their lending criteria in recent years, making it difficult for a person to get a regular home loan if their credit circumstances are not flawless or he doesn't have a regular salaried occupation. So should you stop trying and forego your aspiration to venture off into the real estate market? Certainly not, due to the fact you could always use the McDonough hard money loan approach to finance your flipping project.

A hard money home loan in McDonough promises what's perhaps most desired by real estate investors — a very fast closing time of as few as fourteen days. Additionally, loan amounts can be done for up to 70% loan-to-value of the "as is" property value, as established by a professional appraiser. With interest rates starting out around 10%, hard money real estate loans might appear, initially, to be more costly when compared with conventional bank lending products. But the time frames of these loans are much shorter, which makes the interest rate less significant. Short-term loans of a couple months to a few years are best looked at as cost of capital, the same as all other expenditures in connection with a project. After you remodel and unload the home, recuperating this expense is no different than recovering the cost of the home appliances you installed in the place.

Also, it isn't difficult to be eligible for a hard money mortgage, regardless if your credit rating is not that impressive. As an alternative for focusing solely on the applicant's credit score or net income, McDonough hard money lenders, who may be a privately owned company or an individual, authorize a loan as a result of evaluating the home value, how easy it will be to market, where it is located, and the probability of recovering their money in case of foreclosure. On top of that, if the individual can demonstrate past experience in equivalent real estate ventures, can put down money towards a down payment, and the cost of equivalent houses in the neighborhood works in his favor, he will have a very good shot of being approved to obtain a hard money real estate loan.

So any time you come across a good and lucrative investment opportunity, feel comfortable knowing you'll have a hard money lender in McDonough, prepared to lend you the funds you may need. Submit the form on this page or get in touch with us via phone and let's discuss your property or properties.