An outstanding buy on a fix and flip property in a nice area of the city suddenly shows up — sounds too good to be true. Expert property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are able to haul in a profit of $40-$50k on a regular basis. Naturally, you also realize that their results can be credited to the simple fact that they're professionals, are proficient in hard money loans, they understand the marketplace really well and they also know how to work a public auction to buy their homes at a good price. Still, your rehab and renovation knowledge isn't that bad either — aside from that, you've already identified the right general contractor to start this home.

But where do real estate investors find money? A traditional lender, say for example a bank, takes at least one to two months to consent to the mortgage and deliver the money. Since the majority of sellers favor a fast closing, you may want to begin looking for some other financing options.

Moreover, in case you have a sub-optimal credit situation or do not have a conventional income source, it can be harder to obtain a bank loan, with the tougher loan criteria banks have introduced as of late. So will a shortage of financing stop you from sticking to your dream? Certainly not, because you could always go the Cleves hard money loan route to pay for your home flipping project.

A hard money home loan in Cleves offers what's regarded as imperative to most real estate deals — a quick closing of only a few weeks and at many times even less. What's more, the LTV value can go up to 70% of the place's valuation, as evaluated by a credentialed appraiser. With the rates starting at about 10%, hard money real estate loans may seem, initially, to be more expensive when compared with conventional bank lending products. But in reality, the lending rate is not as pertinent for these loans, because they aren't long-term financing. As it pertains to short-term loans of 1 or 2 years or even less, you should think of them just like you would other expenses for the project. And when you have turned the property, recuperating this expense is identical to recuperating the expense for all the kitchen and bath improvements you did.

Moreover, even someone with low credit can easily qualify for a hard money mortgage. Cleves hard money lenders don't authorize a loan strictly on the basis of the customer's credit score — instead they also look at the property or home, its valuation and location, and the property's capability to pay back the loan by itself. Additional variables that impact a borrower's eligibility for a hard money real estate loan can include how much he is in a position to put towards a down payment, his previous experience as a real estate investor, and price of comparative, just recently sold homes in the neighborhood.

Searching for a hard money lender in Cleves to fund your real estate project is not difficult, assuming that the opportunity that lies before you is promising and has a good potential for returns. Submit the form on this page or call us and let's discuss your project.