There's this phenomenal opportunity to rehab and flip this nice outdated property or home in a good part of town and it seems like the deal you've been wanting for quite a while. Everyone knows that skilled professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, are able to make a typical profit margin of forty to fifty thousand dollars on their flips. It goes without saying their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have been large factors to their results. Nevertheless, you are assured that your first class rehab and remodeling knowledge will help you do a superb job for this property — additionally, you have already arranged to have one of the premier contractors in town to take care of the job.

But funding is usually a separate issue entirely. For those who opt for a normal bank loan, you will wind up waiting roughly 1-2 months up until the mortgage loan is approved and the money is ready to go. With the home owners seeking a fast closing, that does not seem like a wise idea to you in the slightest.

Furthermore, if you have a sub-optimal credit rating or do not have a regular income source, it usually is harder for you to qualify for a bank loan, considering the tighter loan requirements banks have issued in recent times. So do you have to give up and abandon your aspiration to venture off into fix and flips? Certainly not, given that you also have the Mentor-on-the-Lake hard money loan option.

A hard money home loan in Mentor-on-the-Lake boasts what is perhaps most important to real estate investors — a fast closing time period of as few as two weeks. Furthermore, hard money lenders are able to do lending up to 70% LTV of the property or home value, as identified by a qualified third-party appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as more expensive than bank loans. But if you consider these are not long-term home loans, the rate can be misleading. As it pertains to short-term loans of one or two years or even less, you should consider them much like you would other expenditures for your project. When you have turned the house and have made a good financial gain, you can reclaim this expense from the house — the same as recouping the cost of brand-new kitchen appliances that you've put in.

In addition, even a person with poor credit can easily qualify for a hard money mortgage. Mentor-on-the-Lake hard money lenders don't take on a loan solely judging by the person's credit score — rather they additionally evaluate the home, its valuation and location, and the home's capacity to pay back the financing by itself. The amount that an applicant can put upfront for the property or home, how much experience he has in real estate investments, and price range of comparative homes in the vicinity are additional details that go into ascertaining an individual's suitability for a hard money real estate loan.

So if you have found a really good home to flip with a high chance of returns, you've also discovered a hard money lender in Mentor-on-the-Lake that is prepared to provide funding for your fix and flip ventures. Fill out the contact form on this page or give us a call to talk about your property.