Suppose you've come across this truly good bargain on a fix and flip property in a great neighborhood, and you are either a skilled real estate investor or a first-timer who hopes to try out flipping houses. Expert house flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of generating a gain of $40-$50k for the majority of homes. And yes, they are helped in a big way due to their professional knowledge, auction abilities and familiarity with hard money loans. With that being said, you have recently been cultivating your rehab and remodeling knowledge, have got a licensed contractor lined up and are certain that you can do a great job on this home.

But money can be a separate issue entirely. If you opt for a normal loan from the bank, you will have to wait roughly 1-2 months up until the financing is approved and your money is readily available. Considering that all the sellers are seeking a fast closing, that does not seem like a wise idea to you in the slightest.

With banks bringing in tougher loan requirements in the last few years, it is now more challenging for a self-employed individual to obtain a mortgage loan, especially when his credit circumstances are not optimal. So will inadequate financing keep you from following your dream? Never, because you could always go the Minonk hard money loan route to fund your home renovating project.

A hard money home loan in Minonk provides what's perhaps most essential to real estate investors — a fast closing time period of as few as a few weeks. Aside from that, loan amounts are made up to 70% loan-to-value of the as-is property value, as established by a professional appraiser. With the rates starting around 10%, hard money real estate loans may look, initially, to be higher in price when compared with conventional bank financing. But in reality, the rate of interest isn't as relevant for these loans, given that they are not long-term loans. Short-term loans of a couple of months to a few years are best looked at as cost of capital, the same as all other costs associated with a project. After you remodel and resell the house, recovering this expense is just like recouping the money you spent for stainless steel appliances you placed into the property.

Aside from that, hard money mortgages are easy qualifying, even if you posses very bad credit. Minonk hard money lenders do not approve a loan strictly according to the customer's credit score — instead they also examine the home, its valuation and location, and the home's ability to pay back the financing without the help of the applicant. Several other criteria that influence a person's eligibility for a hard money real estate loan include how much money he is in a position to put into a down payment, his former experience as a real estate investor, and selling price of comparative, fairly recently sold homes nearby.

So in the event you run into an outstanding and worthwhile investment opportunity, relax knowing you will have a hard money lender in Minonk, ready to lend you the cash you will need. Complete the contact form on this page or get in touch with us via phone and let's discuss the property or properties you have in mind.