Imagine you've run into this truly good deal on a fix and flip property located in an ideal location, and you happen to be either a skilled real estate investor or a newbie who is looking to try out flipping houses. You may have heard that veteran home flippers, like the husband and wife on HGTV's Flip or Flop, turn a remarkable average return near $40,000 – $50,000. Undoubtedly, you also know that their results can be attributed to the fact that they are experts, are well versed in hard money loans, they understand the market really well and additionally, they are good at working an auction to purchase their homes at a reasonable price. Nonetheless, your rehab and remodeling knowledge isn't that bad either — in any case, you have already identified a good licensed contractor to handle this project.

But how can you find the needed funding for home flipping? A typical lending institution, say for example a bank, takes at a minimum 1-2 months to authorize the mortgage and hand over the monies. Due to the fact the sellers want a fast closing, that does not appear to be a wise idea to you in the slightest.

As well as this, should you have a less-than-perfect credit rating or don't have a consistent income source, it is normally more difficult to qualify for a bank loan, seeing the tighter loan requirements banks have put in place of late. So will a lack of funds prevent you from following your dream? Most certainly not, because you also have the Marengo hard money loan option.

A hard money home loan in Marengo boasts what's possibly most important to real estate investors — a very fast closing in as few as 2 weeks. Furthermore, hard money lenders will often consent to lending up to 70% LTV of the property value, as established by a licensed third-party evaluator. With the loan rates starting out around 10%, hard money real estate loans might seem, initially, to be more expensive in comparison with traditional bank lending products. But when you understand these are not long-term home loans, the rate can be misleading. The price tag on such short-term loans ought to be viewed much like any other cost that you would have to meet pertaining to the project. Right after you rehab and sell off the home, recuperating this expense is just like recuperating the cost of the new kitchen appliances you placed into the property.

Additionally, it isn't difficult to obtain a hard money mortgage, regardless if your credit situation is not that superb. Marengo hard money lenders do not authorize a loan strictly based on the applicant's credit score — instead they will assess the home, where it is located and what it is worth, and the property's ability to pay back the financing without the assistance of the applicant. How much money a borrower can put upfront towards the house, his past real estate experience, and price range of comparable homes in the same vicinity are additional details that go into establishing a borrower's suitability for a hard money real estate loan.

Searching for a hard money lender in Marengo to finance your renovation project is not very hard, as long as the opportunity before you is promising and offers a strong prospect for returns. Fill out the contact form or call us to discuss your project.