Imagine you've stumbled upon this truly good bargain for a fix and flip property in a great location, and you're either a skilled real estate investor or a first-timer who is looking to try his hand at flipping. You may have heard that veteran home flippers, much like the married couple on HGTV's Flip or Flop, enjoy an impressive average return of around $40,000 – $50,000. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction skills have played an important part in their successes. Still, your rehab and renovation knowledge isn't bad either — aside from that, you have already found an ideal contractor to tackle this home.

But how exactly can real estate investors get capital? Should you meet with a regular lender, such as a bank for a mortgage loan, it more than likely will take a minimum of 4-8 weeks for your approval to come through and your funds to be accessible. So if you will be looking for a fast closing, you have to be aware that this will set you back by a couple weeks, causing you to lose out on the opportunity.

What's more, should you have an unfavorable credit situation or don't receive a conventional income source, it usually is harder to obtain a bank loan, with the tighter loan guidelines banks have introduced as of late. So does this leave you with no option, but to abandon your dream of venturing into home renovating? By no means, because you could always use the Lansing hard money loan approach to pay for your home renovating project.

A hard money home loan in Lansing promises what's perhaps most crucial to real estate investors — a fast closing in as little as two weeks. Further, financing can be made up to 70% loan-to-value of the as-is home's valuation, as determined by a qualified appraiser. Some people consider hard money real estate loans to be higher in price than standard loans, because the lending rates for such loans generally start out at 10%. But once you understand these loans are not long-term mortgage loans, the interest rate tends to be misleading. Short-term loans of several months to a handful of years are best looked at as cost of capital, similar to any other financial outlay in connection with a project. Once you've resold the house and have made a successful gain, you're able to recover this expense from the property — just like recouping the money spent on the brand-new home appliances that you put in.

Moreover, even individuals with low credit can easily be eligible for a hard money mortgage. The customer's credit score isn't the single determining factor for Lansing hard money lenders — in addition, they evaluate the piece of real estate, its market valuation, where it is located, and its ability to return their investment if things do not go as planned. The total amount that a person can put down beforehand for the property, how much experience he has in real estate investments, and price range of comparable properties in the same vicinity are other details that go into establishing a borrower's qualification for a hard money real estate loan.

So in the event you run into a very good and lucrative flipping opportunity, relax knowing you will have a hard money lender in Lansing, willing to lend you the money you will need. Submit the contact form or call us to discuss your property.