Suppose you've come across this truly good deal for a fix and flip property you found in a great neighborhood, and you're either an experienced real estate investor or a first-timer who wants to try his hand at flipping. You've probably heard that competent house flippers, such as the couple on HGTV's Flip or Flop, turn an impressive average profit margin near $40,000 – $50,000. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have had a big part in their successes. Having said that, you've recently been brushing up your rehab and remodeling knowledge, have a very good general contractor lined up and are positive that you will be able to do an impressive job on this house.

But how can you get the necessary financing for home flipping? For those who go after a regular loan from the bank, you will have to wait around somewhere around 1 to 2 months up until the time the mortgage loan is authorized and your funding is ready to go. Given that sellers prefer a fast closing, you might want to begin looking for some other funding options.

Furthermore, if you have an unfavorable credit rating or don't receive a conventional income source, it may be tougher for you to obtain a bank loan, with the tighter loan requirements banks have introduced of late. So will a lack of funding stop you from pursuing your ambitions? Definitely not, because you always have the Lisbon hard money loan alternative.

A hard money home loan in Lisbon provides you with what's probably most important to real estate investors — a very fast closing time of as little as 14 days. Further, loans can be made up to 70% loan-to-value of the "as is" house value, as established by a professional appraiser. A number of people regard hard money real estate loans to be more pricey than customary financing, because the lending rates for these loans often start out at 10%. But the lengths of these loans are fairly short, which means the rate is far less significant. The price of such short-term loans should be considered much like any other cost that you would encounter during the project. When you have sold the property or home and have made a positive financial gain, you can recoup this expense from the property or home — similar to recouping the money spent on the brand-new appliances for the kitchen that you put in.

Also, it's easy to obtain a hard money mortgage, even when your credit rating is not that impressive. Lisbon hard money lenders do not take on a loan exclusively judging by the applicant's credit score — instead they additionally examine the property or home, its location and value, and the property's capability to pay back the loan independent of the borrower. Other factors that influence a customer's eligibility for a hard money real estate loan can include how much money he is able to put into a down payment, his previous experience being a real estate investor, and selling price of comparable, recently sold homes in the neighborhood.

So should you come across a good and profitable flipping opportunity, rest assured you'll have a hard money lender in Lisbon, willing to loan you the capital that you need. Submit the form or give us a call to discuss your property.