Imagine you've run across this really great deal for a fix and flip property located in an ideal location, and you happen to be either a seasoned real estate investor or a first-timer who really wants to try out flipping houses. You've heard that veteran house flippers, much like the couple on HGTV's Flip or Flop, have a remarkable average profit margin close to forty to fifty thousand dollars. It's fair to say their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have had an important role in their successes. However, you are certain that your impressive rehab and remodeling abilities will enable you to do a quality job for this house — furthermore, you have already lined up one of the most suggested building contractors in the area to handle the job.

But financing is a separate problem altogether. For those who go after a regular bank loan, you will end up waiting somewhere around 1-2 months until eventually the mortgage loan is authorized and the money is available. With the sellers seeking a fast closing, that doesn't seem like a good idea to you whatsoever.

Moreover, if you have a less-than-perfect credit situation or don't receive a conventional source of income, it is usually more difficult to be eligible for a bank loan, seeing the more stringent loan requirements banks have put in place lately. So will a shortage of funds keep you from pursuing your dream? Definitely not, given that you also have the Linden hard money loan alternative.

When you obtain a hard money home loan in Linden, you have access to what is perhaps most essential to real estate purchases throughout the country — a very fast closing of approximately 14 days. In addition, the LTV value can range up to 70% of the property's valuation, as evaluated by a credentialed appraiser. A number of people consider hard money real estate loans to be higher in price than standard loans, because the interest rates of such loans normally start off at 10%. But when you understand these are not long-term home loans, the rate can be misleading. Short-term loans of a couple months to a few years are best understood in terms of cost of capital, the same as any other financial outlay involved with a project. And as soon as you have finally turned the property, recovering this expense is the exact same as recouping the expense for the bathroom or other upgrades you performed.

Furthermore, even someone with bad credit will be able to qualify for a hard money mortgage. The borrower's credit score will not be the exclusive determining factor for Linden hard money lenders — in addition, they consider the property, how much it is worth, its location, and its capability to return their financial commitment if everything does not work out as planned. Adding to this, if the applicant can demonstrate prior experience in equivalent real estate ventures, can put down money towards a down payment, and the cost of comparable properties in the area works to his benefit, he has an excellent chance of qualifying for a hard money real estate loan.

So any time you run into a good and profitable investment opportunity, feel comfortable knowing you will have a hard money lender in Linden, prepared to lend you the funds you will need. Fill out the form on this page or get in touch with us via phone to talk about your property.