You discovered this amazing possibility for rehabbing and flipping this nice outdated property in a very good area and it seems like the one you've been wanting for a long time. Everyone knows that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, are able to generate a typical profit margin of $40,000 to $50,000 in their rehab business. Without question, their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction skills have played a significant part in their results. Having said that, you've likewise been cultivating your rehab and remodeling skills, have a very good licensed contractor ready for the project and are confident that you can do a stellar job for this house.

But where precisely can real estate investors find money? A typical lending institution, like for example a bank, takes no less than one to two months to authorize the loan and deliver the cash. So if you happen to be expecting a fast closing, you must understand or know that this will cost you a couple of weeks, causing you to miss out on the house.

With banks adding harder loan standards in the past few years, it has become tougher for a self-employed individual to obtain a home loan, especially when his credit score is not perfect. So will a lack of financing prevent you from pursuing your dream? Certainly not, considering that you can always use the Chesterfield hard money loan approach to pay for your rehab project.

A hard money home loan in Chesterfield provides what is probably most essential to real estate investors — a quick closing time period of as little as two weeks. In addition, the LTV value can reach up to 70% of the place's valuation, as determined by a credentialed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as more pricey than bank lending options. But usually, the rate of interest is not as pertinent for these loans, because they will never be long-term financing. Short-term loans of several months to a few years are best understood as cost of capital, much like all other expenses associated with a project. After you remodel and sell the property, recuperating this expense is just like recouping the cost of the home appliances you put in the place.

Moreover, even individuals with low credit will be able to qualify for a hard money mortgage. The person's credit score is not the lone deciding factor for Chesterfield hard money lenders — in addition, they examine the house, its market valuation, its location, and its capacity to bring back their financial commitment if things should not go as intended. Additional criteria that affect an applicant's approval for a hard money real estate loan can include how much he is able to put towards a down payment, his former experience being a real estate investor, and selling price of comparable, fairly recently sold properties in the area.

So in the event you run into a really good and worthwhile flipping opportunity, rest assured you'll have a hard money lender in Chesterfield, willing to lend you the funds you may need. Fill out the form on this page or call us to discuss the property or properties you have in mind.