A fantastic bargain on a fix and flip property in a very good subdivision suddenly shows up — sounds too good to be true. Expert home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of earning a profit of $40-$50k on average. And sure, they are aided in a major way by their professional experience, auction abilities and knowledge of hard money loans. Nonetheless, your rehab and remodeling skills aren't that bad either — besides, you've already located the right licensed contractor to take on this project.

But capital is often a different problem altogether. A conventional lender, for instance a bank, takes at a minimum one to two months to approve the mortgage and deliver the capital. Because most home owners favor a fast closing, you might need to start looking for some other financing alternatives.

With banks establishing more challenging loan standards in recent times, it's become harder for a self-employed person to get a home loan, especially if his credit rating is not optimal. So will a shortage of funds keep you from pursuing your ambitions? Absolutely not, given that you also have the Millen hard money loan option.

A hard money home loan in Millen provides you with what is possibly most crucial to real estate investors — a very fast closing in as little as a few weeks. In addition, the LTV value can reach up to 70% of the property value, as determined by a credentialed appraiser. With the interest rates starting out around 10%, hard money real estate loans may appear, at first, to be more costly compared to conventional bank loans. But the term lengths for these loans tend to be comparatively short, which means the interest rate is less significant. When it comes to short-term loans of 1 or 2 years or even less, you should consider them similar to any other expense for the project. Once you've sold the home and have made a positive financial gain, you're able to recover this expense from the property — very much like recovering the cost of brand-new kitchen appliances that you've installed.

Additionally, it's easy to qualify for a hard money mortgage, even in the event your credit situation is not that extraordinary. The customer's credit score isn't the sole deciding factor for Millen hard money lenders — additionally, they evaluate the home, how much it is worth, its location, and its potential to return their investment if things should not go as planned. How much of their own money an applicant can put down in advance for the home, how much experience he has in real estate investments, and selling price of comparative properties in the neighborhood are additional factors that go into ascertaining a borrower's eligibility for a hard money real estate loan.

Finding a hard money lender in Millen to finance your flipping business is not very hard, as long as the opportunity that lies ahead of you is promising and possesses a good potential for returns. Submit the contact form on this page or call us and let's talk about the project you have in mind.