Imagine you've run across this really great bargain on a fix and flip property located in a great location, and you happen to be either a skilled real estate investor or a first-timer who is looking to try his hand at flipping. Expert property flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a profit of forty to fifty grand as an average on more than one occasion. And indeed, they are helped in a big way as a result of their professional experience, auction expertise and familiarity with hard money loans. Nevertheless, you're assured that your superb rehab and remodeling skills will enable you to do a great job for this home — in addition, you already have arranged to have one of the finest general contractors in town to handle the project.

But how can real estate investors obtain funds? When you get in touch with a customary lender, like a bank for funding, it can take, at the very least, 30-60 days for the approval to come through and your funds to be distributed. With the home owners looking for a fast closing, that does not appear to be a wise idea to you whatsoever.

With banks introducing tougher loan criteria in recent years, it has become harder for a self-employed person to find a home loan, particularly if his credit situation is not flawless. So does this leave you with no option, but to drop your aspiration to venture into home flipping? Definitely not, given that you always have the Lansing hard money loan option.

A hard money home loan in Lansing offers what's considered essential to many real estate sales — a very fast closing of just a 2-3 weeks and sometimes less. Aside from that, loans can be done for up to 70% loan-to-value of the as-is property's valuation, as deemed by a qualified appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be more pricey than bank loans. But the term lengths for these loans are relatively shorter, which means the rate is far less important. The price of such short-term loans should be looked at on par with any other expenditure that you would need to meet for the project. Once you've turned the property or home and have made a successful gain, you'll be able to get back this expense from the house — much like recovering the money necessary for the brand-new home appliances that you have installed.

Furthermore, even individuals with bad credit will be able to be eligible for a hard money mortgage. Instead of focusing exclusively on the applicant's credit score or source of income, Lansing hard money lenders, who could be a private company or an individual person, authorize a loan after assessing the home value, how easy it will be to market, its location, and the likelihood of recouping their capital in case they have to foreclose the loan. Several other variables that influence an individual's approval for a hard money real estate loan include how much he is able to put towards a down payment, his prior experience being a real estate investor, and price range of comparative, fairly recently sold properties in the vicinity.

Searching for a hard money lender in Lansing to help with expenses for your fix and flip endeavor is not difficult, provided that the opportunity that lies before you is promising and possesses a good potential for returns. Fill out the contact form on this page or give us a call and let's talk about your property.