Suppose you've run into this excellent deal for a fix and flip property in a terrific neighborhood, and you happen to be either a seasoned real estate investor or a newbie who really wants to try his hand at flipping. You may have heard that professional house flippers, much like the couple on HGTV's Flip or Flop, enjoy an impressive average return close to $40,000 – $50,000. And sure, they are aided in a major way by their professional experience, auction skills and knowledge of hard money loans. With that being said, you have likewise been brushing up your rehab and renovation skills, have got a building contractor lined up and are confident that you're capable of doing a stellar job on this home.

But where precisely can real estate investors get financing? For those who apply for a normal loan from the bank, you will need to wait somewhere around one to two months until the financing is approved and your money is readily available. Considering that all the home owners want a fast closing, that doesn't appear like a wise idea to you in the slightest.

With banks bringing in more challenging loan guidelines in recent years, it is tougher for a self-employed person to find a home loan, particularly if his credit circumstances are not flawless. So must you give up and forego your dream to venture off into the real estate market? Never, on the grounds that you can always use the Montgomery hard money loan approach to finance your rehab project.

A hard money home loan in Montgomery gives you what is perhaps most desired by real estate investors — a quick closing in as few as a few weeks. Also, hard money lenders are able to do lending up to 70% LTV of the property or home's valuation, as calculated by a professional third-party appraiser. With the interest rates starting out near 10%, hard money real estate loans might appear, at first, to be more costly when compared with traditional bank loans. But usually, the rate of interest isn't as relevant for these loans, because they aren't long-term loans. When it comes to short-term loans of several years or even less, you should think about them the same as you might for every other expense for the project. Right after you renovate and sell off the house, recovering this expense is no different than recovering the money you spent for home appliances you put in the house.

What's more, it is simple to be eligible for a hard money mortgage, even in the event your credit rating is not that superb. Instead of focusing only on the borrower's credit score or net income, Montgomery hard money lenders, who could be a private company or an individual person, authorize a loan after assessing the property value, ease of marketability, its location, and the odds of recovering their capital in case they have to foreclose the loan. On top of this, if the individual can demonstrate past experience in similar real estate endeavors, can put down cash for the down payment, and the cost of comparative properties in the neighborhood works in his favor, he will have a good likelihood of qualifying for a hard money real estate loan.

If you happen to have stumbled on a really great real estate opportunity with a significant prospect of returns, you have also stumbled upon a hard money lender in Montgomery that's happy to finance your flipping venture. Fill out the contact form or get in touch with us via phone to discuss the property or properties you have in mind.