An outstanding buy on a fix and flip opportunity located in a good subdivision suddenly shows up — sounds too good to be true. You've probably heard that professional home flippers, similar to the couple on HGTV's Flip or Flop, turn an impressive average profit margin near $40,000 – $50,000. And sure, they are helped in a big way via their professional knowledge, auction skills and familiarity with hard money loans. Still, your rehab and renovation skills aren't that bad either — besides, you have already identified a good general contractor to take on this job.

But money is often a separate question entirely. If you opt for a normal bank loan, you will end up waiting around approximately one to two months up until the time the mortgage loan is approved and your funds are accessible. Considering that the home owners are seeking a fast closing, that does not appear to be a great idea to you at all.

With banks bringing in more challenging loan standards in recent times, it is now more challenging for a self-employed individual to get a home loan, particularly if his credit rating is not flawless. So does that leave you with no other option, but to abandon your dream to venture into home flipping? Not at all, particularly while Louisville hard money loans enable you to realize great things in real estate.

A hard money home loan in Louisville gives you what's perhaps most crucial to real estate investors — a fast closing time period of as little as 14 days. What's more, the LTV value can go up to 70% of the home's valuation, as determined by a competent appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank lending options. But usually, the lending rate is not as pertinent for these loans, given that they aren't long-term loans. The price tag on such short-term loans should be looked at on par with any other financial outlay that you will have to meet pertaining to the project. When you have turned the property and have made a good return, you're able to recoup this expense from the property or home — just like recouping the money spent on the brand-new kitchen appliances that you've installed.

In addition, even someone with weak credit can easily qualify for a hard money mortgage. Rather than focusing primarily on the person's credit score or net income, Louisville hard money lenders, who could be a privately owned company or an individual, authorize a loan as a result of analyzing the property value, its salability, its location, and the possibility of recovering their capital should they have to foreclose the loan. Other variables that influence a customer's approval for a hard money real estate loan include how much he is able to put towards a down payment, his previous experience as a real estate investor, and price of comparative, recently sold residences in the neighborhood.

So any time you come across a good and worthwhile investment opportunity, rest assured you'll have a hard money lender in Louisville, prepared to lend you the cash you may need. Submit the contact form or give us a call to discuss the property you have in mind.