Imagine you've come across this truly good deal on a fix and flip property you found in a great location, and you happen to be either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. A majority of people know that capable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, are able to make an average profit of forty to fifty thousand dollars on their home projects. And yes, they are helped in a big way via their professional experience, auction skills and knowledge of hard money loans. Having said that, you have likewise been developing your rehab and renovation skills, have a licensed contractor arranged and are confident that you can do an impressive job on this home.

But money is often a different issue entirely. A typical lender, say for example a bank, takes at least 1 to 2 months to approve the mortgage and provide the funds. With the sellers wanting a fast closing, that does not appear like a good option to you at all.

Moreover, if you have a less-than-perfect credit situation or do not receive a consistent income source, it is usually more challenging for you to obtain bank financing, seeing the more stringent loan requirements banks have introduced of late. So will a shortage of funds keep you from sticking to your aspirations? Definitely not, given that you also have the La Porte hard money loan alternative.

If you decide to put in an application for a hard money home loan in La Porte, you're going to get what's possibly most essential to real estate offers throughout the country — a fast closing of around a couple weeks. Additionally, loans can be made up to 70% loan-to-value of the as-is property value, as determined by a professional appraiser. A number of people regard hard money real estate loans to be more expensive than regular financing, because the lending rates for such loans ordinarily start off at 10%. But if you appreciate that these loans are not long-term home loans, the rate of interest tends to be misleading. Short-term loans of several months to a handful of years are best thought of as cost of capital, very much like any other expenditure associated with a project. Once you've sold the home and have made a good return, you can reclaim this expense from the home — just like recouping the cost of brand-new kitchen appliances that you put in.

What's more, it's simple to obtain a hard money mortgage, even when your credit score is not that impressive. Rather than focusing strictly on the person's credit score or net income, La Porte hard money lenders, who may be a privately owned company or an individual person, say yes to a loan after assessing the property value, ease of marketability, its location, and the odds of recovering their capital in case they have to foreclose the loan. The amount that a person can put upfront towards the house, his past real estate experience, and selling price of comparable properties in the same area are other factors that go into analyzing an individual's qualification for a hard money real estate loan.

Locating a hard money lender in La Porte to finance your renovation project is not hard, as long as the opportunity that lies ahead of you is promising and boasts a strong potential for returns. Fill out the contact form or get in touch with us via phone and let's discuss the property you have in mind.