Suppose you've run across this truly good bargain on a fix and flip property you found in a great location, and you happen to be either an experienced real estate investor or a newbie who wants to try out flipping houses. You've probably heard that competent home flippers, much like the married couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin near $40,000 – $50,000. Undoubtedly, you also recognize that their great results are due to the fact that they're professionals, are well versed in hard money loans, they know market trends quite well and furthermore, they are good at working an auction for getting a reasonable deal. Nevertheless, you're convinced that your impressive rehab and renovation abilities can help you do a quality job for this project — furthermore, you already have arranged to have one of the premier general contractors in the area to take care of this project.

But financing is usually a separate problem entirely. In the event you approach a customary lender, like a bank for a mortgage loan, it is in all likelihood going to take, as a minimum, 30-60 days for your approval to come through and your money to be given out. Considering that all the sellers are seeking a fast closing, that doesn't appear to be a good idea to you whatsoever.

With banks introducing tougher loan standards in the recent past, it has become tougher for a self-employed individual to find a home loan, especially if his credit situation is not optimal. So does that leave you with no other option, but to give up your dream of venturing into home flipping? Absolutely not, because you always have the Minden hard money loan alternative.

When you put in an application for a hard money home loan in Minden, you have access to what's perhaps most essential to real estate purchases across the country — a very fast closing of about 14 days. Further, loans can be done for up to 70% loan-to-value of the as-is house's valuation, as established by a licensed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more expensive than bank financing. But the time frames of these loans are comparatively short, which means the rate is much less important. The price of such short-term loans ought to be considered much like every other expense that you would encounter during the project. Once you have resold the house and have made a positive profit, you're able to get back this expense from the home — much like recovering the money necessary for the brand-new home appliances that you put in.

Furthermore, even a person with low credit can easily qualify for a hard money mortgage. The customer's credit score will not be the exclusive deciding factor for Minden hard money lenders — they also consider the piece of real estate, what is it valued at, where it is located, and its ability to bring back their financial commitment if everything does not work out as intended. How much an applicant can put down in advance for the home, his past real estate experience, and selling price of equivalent properties in the same area are additional factors that go into ascertaining an applicant's suitability for a hard money real estate loan.

So if you have found an excellent fixer-upper with a huge probability of returns, you have also found yourself a hard money lender in Minden that's prepared to fund your flipping venture. Fill out the contact form on this page or get in touch with us via phone to talk about the property or properties you have in mind.