You discovered this outstanding opportunity to renovate and flip this nice outdated home in a very good area and it looks a lot like the one you've been eagerly waiting on for quite a while. Expert house flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a profit of forty to fifty grand for the majority of homes. And indeed, they are aided in a major way due to their professional experience, auction expertise and knowledge of hard money loans. Still, your rehab and remodeling knowledge isn't bad either — aside from that, you've already identified a suitable building contractor to handle the home.

But where precisely can real estate investors get funds? A typical lending institution, for instance a bank, takes at least 1 to 2 months to consent to the mortgage and provide the monies. Considering that all the home owners are seeking a fast closing, that doesn't appear to be a good idea to you at all.

Furthermore, should you have a sub-optimal credit rating or don't receive a routine income, it is usually harder to obtain a bank loan, seeing the stricter loan guidelines banks have put in place lately. So does this leave you with no other option, but to abandon your aspiration to venture into the fix and flip business? Definitely not, seeing as you always have the Lexington hard money loan alternative.

A hard money home loan in Lexington provides you with what's probably most crucial to real estate investors — a fast closing time of as little as two weeks. What's more, the LTV value can reach up to 70% of the place's valuation, as estimated by a competent appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more pricey than bank financing. But once you understand these are not long-term mortgage loans, the interest rate may be misleading. The price of such short-term loans should be considered much like any other cost that you would need to meet pertaining to the project. Once you have resold the property or home and have made a positive financial gain, you'll be able to recover this expense from the home — the same as recuperating the money necessary for the brand-new kitchen appliances that you installed.

What's more, it's simple to qualify for a hard money mortgage, even when your credit score is not that superb. Instead of focusing entirely on the applicant's credit score or source of income, Lexington hard money lenders, who may be a private company or an individual person, say yes to a loan after examining the home value, its marketability, its location, and the likelihood of recovering their money should they have to foreclose the loan. Other factors that affect an applicant's eligibility for a hard money real estate loan include the amount he is able to put into a down payment, his former experience being a real estate investor, and price of similar, just recently sold homes in the vicinity.

So in case you have stumbled upon an excellent fixer-upper with a huge probability of returns, you have also stumbled upon a hard money lender in Lexington that is willing to fund your fix and flip projects. Fill out the form on this page or get in touch with us via phone to talk about your property.