A fantastic deal on a fix and flip property in a good neighborhood all of a sudden shows up — seems so good that it is hard to believe. Professional house flippers, much like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of generating a gain of forty to fifty grand on average. Without question, their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction talents have been large factors to their results. Still, your rehab and renovation skills aren't that bad either — besides, you have already found a good contractor to take on the home.

But money is often a different issue entirely. For those who meet with a regular lender, like a bank for funding, it is in all likelihood going to take, as a minimum, 30-60 days for the approval to come through and the money to be furnished. So if you will be anticipating a fast closing, you need to recognize that this will cost you a couple of weeks, causing you to lose out on the opportunity.

What's more, in case you have an unfavorable credit situation or do not receive a conventional source of income, it usually is harder to qualify for a bank loan, with the tougher loan guidelines banks have issued lately. So will a lack of funding keep you from sticking to your ambitions? Certainly not, because you always have the Manassas hard money loan option.

A hard money home loan in Manassas offers you what is viewed as essential to many real estate transactions — a quick closing of only a few weeks and more often than not even less. What's more, the LTV value can go up to 70% of the property's valuation, as determined by a competent appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be more costly than bank lending options. But the term lengths for these loans tend to be relatively short, which makes the rate much less important. Short-term loans of several months to a handful of years are best understood in terms of cost of capital, similar to every other financial outlay associated with a project. And as soon as you've flipped the house, recuperating this expense is comparable to recuperating the expense for all the kitchen and bath updates you did.

Apart from this, hard money mortgages are not difficult to qualify for, whether or not you posses poor credit. Manassas hard money lenders don't take on a loan exclusively according to the applicant's credit score — rather they also assess the property or home, its location and value, and the home's capacity to pay back the financing on its own. On top of that, if the applicant have proven experience in equivalent real estate endeavors, can put down money towards a down payment, and the cost of similar homes in the neighborhood works in his favor, he has got an excellent likelihood of being approved to obtain a hard money real estate loan.

So if you have stumbled upon a really great home to flip with a significant prospect of returns, you've also stumbled upon a hard money lender in Manassas who is willing to provide financing for your flipping ventures. Fill out the form or call us and let's talk about the project you have in mind.