Suppose you've come across this really great deal on a fix and flip property you found in a great location, and you happen to be either a skilled real estate investor or a first-timer who hopes to try his hand at flipping. Everybody knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can readily make a typical profit margin of $40,000 to $50,000 in their rehab business. Undoubtedly, you also realize that their results are credited to the simple fact that they're experts, are knowledgeable in hard money loans, they know market trends really well and in addition, they are good at working a public auction for getting a good deal. Still, your rehab and renovation skills aren't bad either — besides, you have already identified an ideal general contractor to handle this project.

But where can real estate investors obtain funds? For those who meet with a common lender, much like a bank for a mortgage loan, it's in all likelihood going to take no less than thirty to sixty days for the acceptance to come through and your funds to be dispersed. Considering that all the home owners are seeking a fast closing, that doesn't appear to be a great idea to you at all.

On top of this, banks have been tightening their lending standards in recent years, rendering it more tough for a person to get a regular home loan if their credit circumstances are not flawless or he is lacking a consistent salaried occupation. So does this mean you have no option, but to give up your aspiration of venturing into rehabbing? Most certainly not, given that you always have the Lexington hard money loan option.

A hard money home loan in Lexington boasts what is probably most essential to real estate investors — a quick closing in as little as fourteen days. Additionally, loan amounts can be made up to 70% loan-to-value of the as-is valuation, as determined by a professional appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more expensive than bank lending products. But the term lengths for these loans tend to be quite short, making the interest rate less significant. The price of such short-term loans should be evaluated much like any other cost that you would have to meet for the project. After you remodel and sell off the house, recuperating this expense is the same as recuperating the expense for stainless steel appliances you installed in the place.

Also, it isn't difficult to be eligible for a hard money mortgage, regardless of whether your credit rating is not that extraordinary. Instead of focusing only on the person's credit score or source of income, Lexington hard money lenders, who could be a privately owned company or an individual, approve a loan after analyzing the property value, ease of marketability, where it is located, and the odds of getting back their money in case of foreclosure. Other factors that influence a customer's eligibility for a hard money real estate loan include what amount of money he can put into a down payment, his previous experience as a real estate investor, and selling price of comparative, recently sold residences in the area.

Finding a hard money lender in Lexington to cover expenses for your renovation project is not hard, as long as the opportunity that lies ahead of you is promising and offers a good prospect for returns. Submit the form on this page or get in touch with us via phone to discuss the property or properties you have in mind.