A fabulous deal on a fix and flip opportunity in a nice neighborhood all of a sudden shows up — seems so good that it's difficult to believe. You've probably heard that veteran property flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit close to $40,000 – $50,000. Of course, you also understand that their great results are credited to the fact that they're experts, are proficient in hard money loans, they know the marketplace really well and furthermore, they are good at working an auction for getting a good deal. Having said that, you've also been developing your rehab and remodeling skills, have a very good licensed contractor ready for the project and are certain that you can do a great job on this house.

But funding can be a separate issue altogether. If you opt for an ordinary bank loan, you will end up waiting somewhere around one to two months until the financing is approved and your funds are ready to go. Given that home owners would rather have a fast closing, it may be advisable to start looking for additional funding alternatives.

With banks bringing in harder loan requirements in the recent past, it's become more challenging for a self-employed individual to obtain a mortgage loan, especially if his credit circumstances are not flawless. So will inadequate financing stop you from following your ambitions? Under no circumstances, particularly when Lee's Summit hard money loans enable you to accomplish many amazing things in real estate.

A hard money home loan in Lee's Summit gives you what is considered essential to most real estate deals — a quick closing of only a 2-3 weeks and sometimes less. In addition, the LTV value can reach up to 70% of the home value, as determined by a certified appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as more costly than bank financing. But in reality, the lending rate is not as relevant for these loans, given that they will never be long-term loans. When it comes to short-term loans of a handful of years or less, you should think about them the same as you might for any other expense for the project. And once you've flipped the property, recouping this expense is comparable to recovering the expense for the bathroom improvements you did.

Furthermore, even an individual with bad credit can still qualify for a hard money mortgage. The borrower's credit score isn't the single deciding factor for Lee's Summit hard money lenders — they also look at the home, its market valuation, where it is located, and its capability to return their investment if everything does not go as planned. On top of that, if the applicant can demonstrate past experience in comparable real estate ventures, can put down money for a down payment, and the value of similar homes in the neighborhood works to his benefit, he stands a really good shot of being approved to obtain a hard money real estate loan.

So should you come across a good and lucrative investment opportunity, be assured you'll have a hard money lender in Lee's Summit, able to loan you the funds you may need. Submit the contact form on this page or call us to discuss the property you have in mind.