A remarkable buy on a fix and flip opportunity located in a good area of the city shows up out of the blue — seems so good that it's hard to believe. Professional house flippers, much like the young couple on Flip or Flop, HGTV's reality flipping show, are capable of generating a gain of forty to fifty grand on the majority of projects. And indeed, they are aided in a big way as a result of their professional knowledge, auction expertise and knowledge of hard money loans. Still, your rehab and renovation knowledge isn't bad either — aside from that, you've already found an ideal general contractor to take on the job.

But where can you get the necessary capital for home flipping? A traditional lender, for instance a bank, takes at the very least one to two months to approve the mortgage and hand over the money. Given that sellers would rather have a fast closing, you might need to begin looking for some other funding options.

With banks bringing in tougher loan criteria in recent times, it is now more difficult for a self-employed individual to get a home loan, particularly if his credit circumstances are not perfect. So should you stop trying and abandon your desire to venture into the real estate market? Certainly not, given that you also have the Massapequa Park, New York hard money loan alternative.

A hard money home loan in Massapequa Park provides what's deemed essential to most real estate deals — a fast closing of only a couple of weeks and more often than not even less. And additionally, loans can be made up to 70% loan-to-value of the as-is property's valuation, as determined by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be higher priced than bank lending products. But the time frames of these loans tend to be quite short, making the interest rate less significant. The price of such short-term loans should be viewed on par with any other expenditure that you would encounter during the project. And when you've flipped the home, recovering this expense is identical to recuperating the expense for the bathroom or other updates you performed.

In addition, even someone with poor credit can still qualify for a hard money mortgage. Instead of focusing only on the person's credit score or source of income, Massapequa Park hard money lenders, who can be a private company or an individual, approve a loan as a result of evaluating the home value, its salability, where it is located, and the probability of recovering their money in the event of foreclosure. Other criteria that impact a borrower's approval for a hard money real estate loan include the amount he is able to put towards a down payment, his prior experience being a real estate investor, and price range of comparable, fairly recently sold homes in the neighborhood.

If you happen to have found a really good real estate opportunity with a high probability of returns, you have also stumbled upon a hard money lender in Massapequa Park who is prepared to fund your rehab venture. Submit the contact form or call us to talk about the property or properties you have in mind.