Imagine you've stumbled upon this truly good deal for a fix and flip property you found in a terrific neighborhood, and you happen to be either a seasoned real estate investor or a newbie who wants to try out flipping homes. Everyone knows that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, are able to make a typical profit margin of forty to fifty thousand dollars on their home projects. Undoubtedly, you also understand that their successes can be credited to the simple fact that they are experts, are knowledgeable in hard money loans, they understand the marketplace quite well and they also are good at working an auction to purchase their homes at a reasonable price. Still, your rehab and renovation knowledge isn't bad either — aside from that, you have already located the right licensed contractor to start the home.

But funding is often a separate issue altogether. A typical lending institution, like for example a bank, takes no less than 1-2 months to approve the financing and deliver the capital. Since most home owners give preference to a fast closing, you might want to begin seeking out some other funding options.

As well as this, for those who have an unfavorable credit score or do not receive a regular income source, it is normally more difficult for you to obtain a bank loan, seeing the more stringent loan guidelines banks have issued recently. So will a lack of funding keep you from following your ambitions? Most certainly not, because you also have the Lexington hard money loan alternative.

A hard money home loan in Lexington can provide what's considered vital to many real estate transactions — a fast closing of only a couple of weeks and oftentimes less. Furthermore, hard money lenders are able to do funding up to 70% LTV of the property's valuation, as estimated by a licensed third-party appraiser. With the lending rates starting near 10%, hard money real estate loans may appear, at first glance, to be higher in price compared to traditional bank lending products. But usually, the lending rate is not as useful a measure for these loans, given that they will never be long-term loans. When it comes to short-term loans of 1 or 2 years or even less, you should think of them similar to any kind of other expense for your project. And when you have turned the property, recovering this expense is identical to recovering the expense for the bathroom or other updates you did.

Also, it isn't difficult to obtain a hard money mortgage, even in the event your credit score is not that impressive. Instead of focusing strictly on the person's credit score or wages, Lexington hard money lenders, who could be a privately owned company or an individual, authorize a loan as a result of examining the home value, its salability, where it is located, and the probability of recuperating their capital in the event of foreclosure. Additional factors that impact a customer's approval for a hard money real estate loan include how much money he can put into a down payment, his past experience being a real estate investor, and price of comparable, fairly recently sold properties in the area.

Searching for a hard money lender in Lexington to fund your fix and flip endeavor is not very hard, assuming that the opportunity in front of you is promising and boasts the right potential for returns. Complete the form on this page or give us a call and let's discuss your property or properties.