A fantastic deal on a fix and flip property in a very good area of the city suddenly shows up — sounds so good that it is hard to believe. Professional house flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are capable of generating a gain of forty to fifty grand for the majority of homes. And sure, they are helped in a big way due to their professional know-how, auction expertise and knowledge of hard money loans. Having said that, you have recently been brushing up your rehab and remodeling knowledge, have a very good general contractor lined up and are confident that you will be able to do a great job on this home.

But where can you find the necessary funding for home flipping? For those who meet with a common lender, such as a bank for a mortgage loan, it's very likely going to take, at the very least, thirty to sixty days for the approval to be completed and the funds to be sent out. With all the sellers seeking a fast closing, that doesn't seem like a good option to you whatsoever.

Moreover, if you have a sub-optimal credit situation or don't have a routine income source, it is normally tougher to obtain a bank loan, with the stricter loan criteria banks have put in place lately. So will inadequate financing stop you from following your aspirations? Not at all, especially when Midlothian hard money loans will assist you to accomplish many amazing things in the real estate world.

A hard money home loan in Midlothian can provide what's viewed as crucial to many real estate transactions — a quick closing of only a few weeks and at times even less. Further, loans can be made up to 70% loan-to-value of the "as is" property value, as determined by a professional appraiser. A number of people consider hard money real estate loans to be more pricey than regular financing, because the interest rates of such loans typically start out at 10%. But the time frames of these loans are relatively shorter, making the interest rate much less significant. The price tag on such short-term loans should be looked at on par with any other expenditure that you might encounter during the project. And once you have flipped the home, recovering this expense is comparable to recuperating the expense for all the bathroom improvements you performed.

Additionally, it is easy to qualify for a hard money mortgage, even if your credit score is not that extraordinary. As an alternative for focusing entirely on the borrower's credit score or net income, Midlothian hard money lenders, who can be a private company or an individual person, approve a loan after analyzing the home value, how easy it will be to market, where it is located, and the probability of recovering their money if they have to foreclose the loan. The amount that an applicant can put down beforehand towards the home, how much practical experience he has in real estate investing, and price range of equivalent homes in the same neighborhood are various other details that go into ascertaining an applicant's suitability for a hard money real estate loan.

So should you run into a very good and profitable flipping opportunity, be assured you will have a hard money lender in Midlothian, prepared to lend you the capital you will need. Enter your info into the form or give us a call and let's discuss the property you have in mind.