An incredible deal on a fix and flip opportunity located in a very good area of the city shows up out of the blue — sounds so good that it is difficult to believe. Professional house flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are able to earn a profit of $40-$50k for most homes. Of course, you also recognize that their great results can be credited to the simple fact that they're professionals, are well versed in hard money loans, they understand market trends quite well and they also know how to work an auction to purchase their homes at a reasonable deal. Nevertheless, you're certain that your superb rehab and renovation abilities will assist you to do a quality job for this house — furthermore, you already have lined up one of the finest building contractors in the business to handle this project.

But where precisely do real estate investors obtain financing? A typical lending institution, like for example a bank, takes at a minimum one to two months to consent to the mortgage and hand over the cash. With all the home owners wanting a fast closing, that doesn't seem like a wise idea to you whatsoever.

As well as this, in case you have a less-than-perfect credit score or do not have a consistent income source, it can be harder for you to qualify for bank financing, seeing the tougher loan guidelines banks have put in place in recent times. So will a lack of funding keep you from following your dream? Under no circumstances, especially when Lexington hard money loans can help you achieve many amazing things in the real estate market.

A hard money home loan in Lexington offers what's considered imperative to most real estate deals — a quick closing of just a couple of weeks and at many times less. And additionally, loan amounts can be made up to 70% loan-to-value of the "as is" house value, as established by a qualified appraiser. With the loan rates starting out around 10%, hard money real estate loans may seem, initially, to be more expensive compared to traditional bank loans. But when you appreciate that these are not long-term loans, the rate can be misleading. Short-term loans of a couple of months to a few years are best thought of as cost of capital, much like all other costs related to a project. And as soon as you have turned the property or home, recovering this expense is comparable to recuperating the expense for the bathroom or other updates you performed.

Apart from this, hard money mortgages are not difficult to qualify for, whether or not you have a weak credit score. Lexington hard money lenders don't approve a loan strictly based on the borrower's credit score — rather they additionally examine the home, where it is located and what it is worth, and the home's capability to pay back the loan without the assistance of the person. Other criteria that have an impact on a borrower's approval for a hard money real estate loan can include how much he is in a position to put into a down payment, his previous experience as a real estate investor, and selling price of comparative, recently sold residences in the neighborhood.

So should you run into a really good and profitable investment opportunity, rest assured you will have a hard money lender in Lexington, ready to loan you the cash you may need. Enter your info into the contact form or give us a call and let's talk about your property.