Imagine you've encountered this really great bargain for a fix and flip property located in a terrific neighborhood, and you are either a seasoned real estate investor or a first-timer who wants to try out flipping houses. A majority of people know that expert professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can readily generate a typical profit of $40,000 to $50,000 on their flips. And without a doubt, they are aided in a major way as a result of their professional knowledge, auction abilities and understanding of hard money loans. Still, your rehab and remodeling knowledge isn't that bad either — aside from that, you have already located a good general contractor to handle the home.

But where do you find the necessary capital for home flipping? If you go after a normal bank loan, you will have to wait roughly 1 to 2 months up until the time the financing is approved and the funds are readily available. Considering that all the sellers are looking for a fast closing, that doesn't appear like a good option to you at all.

On top of this, banks have already been tightening up their lending standards as of late, which makes it tough for someone to obtain a typical loan if their credit rating is not perfect or he does not possess a consistent salaried job. So does this leave you with no option, but to drop your aspiration of venturing into home flipping? Most certainly not, because you also have the Lehighton hard money loan alternative.

When you apply for a hard money home loan in Lehighton, you're going to get what's perhaps most vital to real estate offers across the country — a quick closing of approximately two weeks. What's more, the LTV value can range up to 70% of the home value, as evaluated by a certified appraiser. A number of people believe hard money real estate loans to be more costly than ordinary financing, since the interest rates for such loans usually start out at 10%. But in reality, the rate of interest isn't as pertinent for these loans, simply because they aren't long-term financing. Short-term loans of a couple months to a few years are best thought of in terms of cost of capital, much like every other expense involved with a project. Right after you remodel and unload the house, recouping this expense is the same as recouping the one for home appliances you installed in the home.

Furthermore, even a person with low credit will be able to qualify for a hard money mortgage. Lehighton hard money lenders do not approve a loan exclusively based on the applicant's credit score — instead they additionally look at the property, its value and location, and the property's capacity to pay back the financing by itself. The total amount that a person can put down in advance towards the house, how much experience he has in real estate investments, and selling price of comparable properties in the vicinity are various other details that go into analyzing an individual's suitability for a hard money real estate loan.

If you happen to have found a wonderful home to flip with a high potential for returns, you have also discovered a hard money lender in Lehighton who is willing to provide financing for your fix and flip project. Enter your info into the contact form or give us a call to discuss the property or properties you have in mind.