There's this amazing opportunity to fix and flip this wonderful out of date property in a fantastic part of town and it looks a lot like the deal you've been eagerly waiting on for quite a while. Expert residential home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping series, are able to earn a profit of $40-$50k on average. Of course, you also recognize that their great results are attributed to the simple fact that they are professionals, are knowledgeable in hard money loans, they understand the marketplace quite well and furthermore, they are good at working a public auction to purchase their homes at a good price. On the other hand, you are certain that your superb rehab and remodeling knowledge can help you do an outstanding job for this house — in addition, you already have lined up one of the best general contractors in the area to take care of this project.

But how can you get the necessary financing for home flipping? A standard lending institution, for instance a bank, takes at least 1-2 months to authorize the financing and deliver the cash. So if you are anticipating a fast closing, it's important to understand or know that this could cost you a couple of weeks, making you miss out on the home.

With banks bringing in more challenging loan standards in the past several years, it's become harder for a self-employed individual to get a home loan, particularly if his credit score is not perfect. So should you give up and abandon your ambition to venture into the real estate market? By no means, particularly while Cumming hard money loans will assist you to accomplish many amazing things in the real estate market.

A hard money home loan in Cumming offers you what is considered vital to many real estate deals — a very fast closing of only a few weeks and at times less. In addition, the LTV value can reach up to 70% of the property value, as evaluated by a credentialed appraiser. A number of people regard hard money real estate loans to be higher in price than ordinary loans, since the lending rates of such loans normally start out at 10%. But once you understand these are not long-term mortgage loans, the rate of interest tends to be misleading. Short-term loans of several months to a few years are best understood in terms of cost of capital, the same as all other costs in connection with a project. After you rehab and sell off the home, recovering this expense is just like recovering the expense for home appliances you installed in the house.

Aside from that, hard money mortgages are easy qualifying, whether or not you have a weak credit score. The borrower's credit score isn't the primary deciding factor for Cumming hard money lenders — additionally, they examine the property, its market valuation, where it is located, and its capability to earn back their investment if things should not go as planned. Additional factors that impact a borrower's acceptance for a hard money real estate loan can include how much he can put towards a down payment, his previous experience being a real estate investor, and price of comparable, recently sold properties nearby.

If you happen to have found an excellent real estate opportunity with a high prospect of returns, you've also discovered a hard money lender in Cumming who is willing to provide financing for your fix and flip project. Fill out the form on this page or call us to talk about the project you have in mind.