A fabulous deal on a fix and flip opportunity in an excellent area of the city shows up out of the blue — sounds too good to be true. Many people know that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can generate a typical profit margin of $40,000 to $50,000 in their rehab business. And sure, they are aided in a big way by their professional experience, auction abilities and understanding of hard money loans. Nonetheless, your rehab and renovation skills aren't that bad either — besides, you've already identified a suitable building contractor to take on the job.

But how can you obtain the necessary capital for home flipping? A traditional lender, for instance a bank, takes at the very least 1-2 months to consent to the loan and hand over the cash. Since most home owners would prefer a fast closing, it may be best to start searching for additional funding options.

With banks bringing in harder loan guidelines in the past few years, it's become tougher for a self-employed individual to obtain a home loan, especially when his credit score is not perfect. So will a shortage of financing stop you from pursuing your aspirations? Certainly not, seeing as you also have the Michigan City hard money loan option.

A hard money home loan in Michigan City provides what is probably most sought after by real estate investors — a quick closing in as little as 14 days. In addition, the LTV value can reach up to 70% of the property value, as determined by a certified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more pricey than bank financing. But the lengths of these loans are relatively shorter, which means the rate is much less significant. The price of such short-term loans ought to be evaluated much like any other expense that you would need to meet for the project. Right after you renovate and resell the house, recuperating this expense is the same as recovering the money you spent for new kitchen appliances you placed into the place.

Apart from this, hard money mortgages are not difficult to qualify for, even when you have below-average credit. The applicant's credit score isn't the exclusive determining factor for Michigan City hard money lenders — additionally, they look at the property, how much it is worth, where it is located, and its capacity to bring back their financial commitment if things should not work out as planned. Additional variables that influence an individual's approval for a hard money real estate loan include how much money he is in a position to put into a down payment, his prior experience as a real estate investor, and price of similar, recently sold properties in the area.

So in the event you come across a really good and worthwhile flipping opportunity, rest assured you will have a hard money lender in Michigan City, ready to lend you the funds you'll need. Complete the form or get in touch with us via phone to discuss your project.