Suppose you've run into this truly good bargain for a fix and flip property in a great neighborhood, and you're either a skilled real estate investor or a newbie who hopes to try his hand at flipping. Expert home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a profit of $40-$50k as an average on more than one occasion. And without a doubt, they are aided in a major way due to their professional know-how, auction abilities and familiarity with hard money loans. Nonetheless, your rehab and remodeling skills aren't that bad either — in any case, you've already found an ideal building contractor to tackle the job.

But capital is a separate issue altogether. A typical lender, like for example a bank, takes no less than one to two months to authorize the financing and deliver the money. Since most sellers prefer a fast closing, you might have to start seeking out other funding options.

On top of this, banks have been tightening up their lending criteria as of late, making it challenging for someone to receive an ordinary home loan if their credit score is not perfect or he does not possess a regular salaried job. So does this mean you are without an option, but to abandon your dream of venturing into home flipping? Never, on the grounds that you can always go the Midway hard money loan route to pay for your rehab project.

A hard money home loan in Midway offers what is regarded as crucial to most real estate deals — a quick closing of only a 2-3 weeks and oftentimes even less. Also, hard money lenders can approve funding up to 70% LTV of the property value, as identified by a credentialed third-party appraiser. With loan rates starting off at about 10%, hard money real estate loans might appear, initially, to be more expensive compared to traditional bank financing. But when you appreciate that these loans are not long-term home loans, the interest rate tends to be misleading. When it comes to short-term loans of 1 or 2 years or even less, you should consider them just like you would other expenses for the project. And once you've finally flipped the home, recuperating this expense is comparable to recuperating the expense for all the bathroom updates you performed.

In addition, even someone with weak credit can still qualify for a hard money mortgage. Midway hard money lenders don't approve a loan solely according to the applicant's credit score — rather they will analyze the property, its value and location, and the home's ability to pay back the loan on its own. Adding to this, if the individual can demonstrate prior experience in comparable real estate projects, can put down money towards a down payment, and the value of similar homes in the vicinity works to his benefit, he stands an excellent likelihood of being eligible to get a hard money real estate loan.

Locating a hard money lender in Midway to fund your real estate project is not hard, as long as the opportunity before you is promising and boasts the right potential for returns. Fill out the contact form on this page or call us to talk about the property or properties you have in mind.