A fabulous deal on a fix and flip opportunity located in a nice subdivision suddenly turns up — seems too good to be true. Professional house flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of generating a gain of $40-$50k on average. And indeed, they are aided in a major way by their professional experience, auction expertise and understanding of hard money loans. Still, your rehab and remodeling skills aren't that bad either — in any case, you have already identified an ideal general contractor to tackle this project.

But how do real estate investors find funding? A standard lender, like for example a bank, takes a minimum of one to two months to consent to the mortgage and hand over the capital. So if you will be wishing for a fast closing, it is important you understand that this could set you back by a few weeks, making you lose out on the opportunity.

Furthermore, for those who have a sub-optimal credit score or do not receive a conventional source of income, it can be harder for you to qualify for a bank loan, seeing the stricter loan criteria banks have issued lately. So will a lack of funds prevent you from sticking to your ambitions? Not at all, especially while Loves Park hard money loans enable you to accomplish many amazing things in the real estate world.

A hard money home loan in Loves Park boasts what's probably most important to real estate investors — a fast closing in as few as a few weeks. Further, loan amounts are made up to 70% loan-to-value of the "as is" home value, as deemed by a licensed appraiser. A number of people regard hard money real estate loans to be higher in price than ordinary loans, because the interest rates for these loans commonly start out at 10%. But once you understand these loans are not long-term loans, the rate of interest tends to be misleading. As it pertains to short-term loans of 1 or 2 years or less, you should look at them just like you would other expenses for the project. After you rehab and sell off the house, recovering this expense is just like recovering the money you spent for stainless steel appliances you placed into the home.

What's more, it's easy to qualify for a hard money mortgage, even when your credit situation is not that superb. As an alternative for focusing solely on the borrower's credit score or net income, Loves Park hard money lenders, who may be a privately owned company or an individual, approve a loan as a result of assessing the property value, ease of marketability, its location, and the likelihood of recuperating their capital should they have to foreclose the loan. Several other variables that affect a person's acceptance for a hard money real estate loan can include what amount of money he is able to put into a down payment, his previous experience as a real estate investor, and price range of comparative, fairly recently sold homes nearby.

So if you have stumbled on a wonderful home to flip with a huge prospect of returns, you've also discovered a hard money lender in Loves Park who is ready to provide funding for your rehab venture. Fill out the contact form on this page or get in touch with us via phone and let's discuss the property or properties you have in mind.