A fantastic bargain on a fix and flip property in a very good area of the city suddenly turns up — sounds too good to be true. Everyone knows that expert professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, can readily earn a typical profit margin of forty to fifty thousand dollars in their rehab business. Naturally, you also realize that their success are attributed to the fact that they're professionals, are well versed in hard money loans, they know the market quite well and they also are good at working an auction for getting an appropriate deal. On the other hand, you are convinced that your first class rehab and remodeling talents will assist you to do a superb job for this home — in addition, you already have lined up one of the best general contractors in town to take on this job.

But where can real estate investors find money? When you approach a customary lending institution, like a bank for a loan, it's very likely going to take at least four to eight weeks for the acceptance to come through and the money to be accessible. Given that home owners wish to have a fast closing, you might have to start seeking out additional financing alternatives.

Furthermore, if you have a sub-optimal credit rating or do not have a consistent source of income, it is usually more challenging to be eligible for a bank loan, with the more stringent loan criteria banks have issued as of late. So will a shortage of funds keep you from following your ambitions? Definitely not, because you also have the Marion hard money loan alternative.

A hard money home loan in Marion can provide what is deemed vital to most real estate deals — a very fast closing of only a couple of weeks and at times even less. Plus, the LTV value can range up to 70% of the property value, as determined by a competent appraiser. Some individuals consider hard money real estate loans to be more expensive than ordinary financing, considering interest rates for these loans commonly start at 10%. But in reality, the interest rate is not as relevant for these loans, given that they aren't long-term financing. Short-term loans of several months to a few years are best approached as cost of capital, very much like all other expenditures in connection with a project. And as soon as you've finally turned the home, recuperating this expense is identical to recovering the expense for all the bathroom upgrades you did.

Apart from this, hard money mortgages are not difficult to qualify for, even when you have bad credit. The applicant's credit score will not be the primary determining factor for Marion hard money lenders — additionally, they look at the house, its market value, where it is located, and its potential to return their financial commitment if things do not work out as planned. Additional factors that affect an applicant's approval for a hard money real estate loan include the amount he is in a position to put into a down payment, his former experience being a real estate investor, and price of similar, recently sold properties in the area.

So if you have found a really great real estate opportunity with a high probability of returns, you've also found yourself a hard money lender in Marion who is willing to fund your fix and flip project. Fill out the form or give us a call to discuss your project.