An incredible bargain on a fix and flip property located in a good neighborhood all of a sudden shows up — sounds so good that it's difficult to believe. Most folks know that capable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, are able to earn an average profit margin of $40,000 to $50,000 on their flips. And indeed, they are aided in a big way as a result of their professional knowledge, auction expertise and knowledge of hard money loans. Having said that, you've recently been brushing up your rehab and renovation skills, have a very good general contractor ready to go and are certain that you're capable of doing a stellar job for this house.

But how can real estate investors get funds? For those who meet with a regular lender, like a bank for a loan, it is more than likely going to take a minimum of thirty to sixty days for the approval to be completed and your funds to be dispersed. With the home owners seeking a fast closing, that doesn't appear like a wise idea to you whatsoever.

What's more, in case you have an unfavorable credit rating or don't receive a consistent income, it usually is tougher for you to qualify for a bank loan, seeing the more stringent loan criteria banks have put in place of late. So does that leave you with no other option, but to drop your aspiration of venturing into home renovating? Not at all, particularly when Marshall hard money loans can help you accomplish great things in the real estate market.

A hard money home loan in Marshall offers you what's considered essential to many real estate transactions — a fast closing of only a 2-3 weeks and more often than not even less. Also, hard money lenders are able to do lending up to 70% LTV of the home's valuation, as estimated by a credentialed third-party evaluation. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more pricey than bank financing. But in reality, the rate of interest is not as pertinent for these loans, because they are not long-term financing. Short-term loans of a couple of months to a handful of years are best looked at as cost of capital, similar to any other expenditure involved with a project. When you have resold the property and have made a positive financial gain, you can reclaim this expense from the property — just like recovering the money spent on the brand-new appliances for the kitchen that you've installed.

Aside from that, hard money mortgages are easy qualifying, even in the event you have got a low credit rating. Marshall hard money lenders don't approve a loan exclusively according to the person's credit score — instead they additionally evaluate the property, its location and value, and the property's capability to pay back the loan independent of the applicant. Adding to that, if the borrower can demonstrate past experience in equivalent real estate projects, can place down cash towards the down payment, and the value of similar houses in the area works in his favor, he will have a very good shot of being eligible to get a hard money real estate loan.

So any time you come across a very good and lucrative investment opportunity, feel comfortable knowing you'll have a hard money lender in Marshall, able to lend you the money you will need. Fill out the contact form on this page or call us and let's talk about the property or properties you have in mind.