An incredible deal on a fix and flip opportunity located in a nice area of the city all of a sudden shows up — sounds too good to be true. Many people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, are able to generate an average profit of $40,000 to $50,000 on their flips. No need to explain that their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction talents have been major factors to their successes. However, you're convinced that your superb rehab and remodeling abilities will enable you to do a great job for this property — additionally, you already have lined up one of the best building contractors in the area to take care of the project.

But funding can be a separate issue altogether. A typical lender, for instance a bank, takes at the very least 1 to 2 months to approve the loan and release the capital. So if you will be looking for a fast closing, it is important you understand that this could set you back by a couple weeks, making you miss out on the sale.

With banks bringing in harder loan standards in the past several years, it is tougher for a self-employed person to obtain a home loan, especially when his credit circumstances are not perfect. So must you admit defeat and abandon your aspiration to venture into fix and flips? By no means, particularly when Morris hard money loans enable you to realize many amazing things in the real estate market.

A hard money home loan in Morris can provide what is viewed as essential to most real estate transactions — a quick closing of just a few weeks and sometimes even less. Furthermore, hard money lenders frequently agree to lending up to 70% LTV of the home value, as estimated by a credentialed third-party appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank loans. But when you understand these loans are not long-term loans, the rate of interest can be misleading. As it pertains to short-term loans of 1 or 2 years or even less, you should think of them much like you would other expenses for the project. Right after you remodel and unload the property, recovering this expense is no different than recovering the money you spent for new kitchen appliances you installed in the place.

Furthermore, even an individual with poor credit will be able to be eligible for a hard money mortgage. Rather than focusing exclusively on the applicant's credit score or wages, Morris hard money lenders, who can be a privately owned company or an individual, authorize a loan after analyzing the property value, its marketability, where it is located, and the likelihood of recovering their capital in the event of foreclosure. Several other criteria that impact an individual's eligibility for a hard money real estate loan can include how much he is in a position to put into a down payment, his former experience as a real estate investor, and price of comparable, recently sold homes nearby.

So if you have stumbled on a really great home to flip with a huge potential for returns, you've also found yourself a hard money lender in Morris that's ready to fund your rehab ventures. Enter your info into the contact form on this page or call us and let's discuss the project you have in mind.