Suppose you've run across this truly good deal for a fix and flip property located in a great neighborhood, and you happen to be either a seasoned real estate investor or a newbie who really wants to try his hand at flipping. Everybody knows that expert professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can generate a typical profit of $40,000 to $50,000 when they flip properties. Naturally, you also understand that their success can be credited to the simple fact that they're industry experts, are knowledgeable in hard money loans, they understand the market quite well and in addition, they are good at working an auction to buy their homes at a good deal. However, you're certain that your superb rehab and remodeling abilities will help you do a quality job for this project — furthermore, you already have arranged to have one of the most sought after contractors in town to take on this project.

But how do you obtain the necessary funding for home flipping? A traditional lender, say for example a bank, takes at a minimum one to two months to authorize the mortgage and deliver the monies. Considering that the home owners want a fast closing, that doesn't appear to be a good option to you whatsoever.

To add to it, banks have been tightening their lending criteria in recent years, making it challenging for someone to obtain an ordinary home loan if their credit circumstances are not perfect or he doesn't have a consistent salaried profession. So will inadequate funds stop you from sticking with your ambitions? Never, on the grounds that you can always use the Maryland Heights hard money loan approach to finance your home flipping project.

Should you opt for a hard money home loan in Maryland Heights, you have access to what is possibly most essential to real estate transactions across the country — a quick closing of roughly 14 days. And additionally, loans can be done for up to 70% loan-to-value of the "as is" property value, as established by a qualified appraiser. With the loan rates starting around 10%, hard money real estate loans might appear, at first, to be higher in price compared to traditional bank lending products. But when you consider these loans are not long-term mortgage loans, the rate of interest tends to be misleading. As it pertains to short-term loans of several years or even less, you should think of them identical to any sort of other expense for your project. After you fix up and unload the home, recouping this expense is just like recouping the one for stainless steel appliances you installed in the house.

Besides, hard money mortgages are easy qualifying, even if you have less-than-perfect credit. The applicant's credit score will not be the lone determining factor for Maryland Heights hard money lenders — they also evaluate the property, how much it is worth, its location, and its capability to return their financial commitment if things do not go as planned. On top of that, if the person have proven experience in comparable real estate ventures, can place down money for the down payment, and the price of comparable properties in the area works in his favor, he will have an excellent likelihood of being approved for a hard money real estate loan.

Locating a hard money lender in Maryland Heights to finance your real estate project is not very challenging, as long as the opportunity before you is promising and boasts a strong potential for returns. Submit the form or get in touch with us via phone to talk about your property or properties.