Suppose you've encountered this really great deal for a fix and flip property you found in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who really wants to try his hand at flipping. You've heard that veteran property flippers, like the couple on HGTV's Flip or Flop, turn a remarkable average profit of around $40,000 – $50,000. Undoubtedly, you also know that their results are due to the simple fact that they're industry experts, are proficient in hard money loans, they know the market really well and furthermore, they are good at working a public auction for getting a reasonable deal. Still, your rehab and renovation knowledge isn't that bad either — aside from that, you have already located an ideal general contractor to tackle this project.

But where precisely do real estate investors obtain funding? Should you opt for a normal bank loan, you will end up waiting around approximately 1-2 months until eventually the money is authorized and the money is ready to go. Since most home owners would rather have a fast closing, you may want to start looking for some other funding alternatives.

To add to it, banks have been tightening up their lending criteria as of late, which makes it challenging for a person to obtain a typical home loan if their credit situation is not perfect or he doesn't have a consistent salaried job. So does this mean you have no option, but to abandon your aspiration to venture into the fix and flip business? Under no circumstances, especially while Millstadt hard money loans can help you accomplish many amazing things in the real estate world.

A hard money home loan in Millstadt gives you what is probably most important to real estate investors — a quick closing in as little as a few weeks. Besides that, hard money lenders can do lending up to 70% LTV of the property or home value, as calculated by a credentialed third-party evaluator. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more pricey than bank financing. But once you understand these loans are not long-term loans, the rate of interest can be misleading. Short-term loans of a couple of months to a handful of years are best understood as cost of capital, the same as every other financial outlay in connection with a project. Right after you fix up and sell the house, recovering this expense is the same as recovering the expense for new kitchen appliances you put in the house.

Aside from that, hard money mortgages are not difficult to qualify for, even if you have a weak credit score. Millstadt hard money lenders don't take on a loan strictly on the basis of the person's credit score — rather they also analyze the home, where it is located and what it is worth, and the property's capability to pay back the loan on its own. Additional criteria that have an impact on a customer's approval for a hard money real estate loan include the amount he is in a position to put towards a down payment, his previous experience as a real estate investor, and selling price of comparable, fairly recently sold residences in the neighborhood.

So any time you run into a good and lucrative flipping opportunity, be assured you will have a hard money lender in Millstadt, ready to loan you the cash you'll need. Fill out the form on this page or give us a call to talk about your property.