Suppose that you've stumbled upon this truly good bargain for a fix and flip property located in an ideal neighborhood, and you are either an experienced real estate investor or a first-timer who is looking to try out flipping houses. Professional residential home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping show, are able to generate a profit of $40-$50k on the majority of projects. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction talents have played a big part in their successes. With that being said, you have recently been developing your rehab and renovation skills, have a contractor ready to go and are positive that you're capable of doing a bang up job on this home.

But where can real estate investors get money? When you go after an ordinary loan via a bank, you will end up waiting somewhere around 1-2 months before the loan is approved and your funds are ready to go. With all the sellers wanting a fast closing, that doesn't seem like a great idea to you whatsoever.

To add to it, banks have already been tightening their lending requirements in recent years, rendering it more challenging for people to get an ordinary home loan if their credit circumstances are not perfect or he doesn't have a regular salaried profession. So must you stop trying and abandon your dream to get into the real estate market? By no means, considering that you can always go the Lovejoy hard money loan route to fund your flipping project.

A hard money home loan in Lovejoy provides what is perhaps most sought after by real estate investors — a fast closing time period of as few as two weeks. Also, hard money lenders frequently agree to funding up to 70% LTV of the property or home's valuation, as established by a professional third-party evaluation. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as higher in price than bank financing. But the time frames of these loans are quite shorter, which means the rate is much less important. The price of such short-term loans should be looked at much like any other expense that you will have to meet for the project. Once you've resold the house and have made a positive return, you can reclaim this expense from the home — similar to recuperating the money necessary for the brand-new kitchen appliances that you put in.

Additionally, it isn't difficult to be eligible for a hard money mortgage, even when your credit rating is not that impressive. Lovejoy hard money lenders don't authorize a loan exclusively according to the person's credit score — rather they also examine the property or home, its valuation and location, and the home's capability to pay back the financing independent of the person. Other factors that impact an applicant's acceptance for a hard money real estate loan can include what amount of money he is in a position to put towards a down payment, his previous experience being a real estate investor, and price of comparative, just recently sold residences in the area.

So should you run into a good and profitable investment opportunity, rest assured you will have a hard money lender in Lovejoy, in a position to lend you the capital you will need. Fill out the contact form or give us a call to talk about the project you have in mind.