An incredible deal on a fix and flip property located in a good neighborhood all of a sudden shows up — sounds too good to be true. Professional residential home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of $40-$50k for the majority of homes. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have been large factors to their success. However, you're assured that your impressive rehab and renovation knowledge will assist you to do an outstanding job on this home — additionally, you already have arranged to have one of the most sought after general contractors in the business to take care of the job.

But where can real estate investors get funds? A standard lender, say for example a bank, takes no less than one to two months to authorize the loan and provide the funds. So if you will be wishing for a fast closing, it's important for you to be aware that this may cost you a couple of weeks, causing you to miss out on the home.

Furthermore, if you have an unfavorable credit rating or don't receive a conventional income, it is usually harder for you to obtain bank financing, with the more stringent loan guidelines banks have issued lately. So will a lack of funds keep you from sticking to your ambitions? Definitely not, because you also have the Morristown, New Jersey hard money loan alternative.

When you apply for a hard money home loan in Morristown, you have access to what is probably most important to real estate negotiations throughout the country — a quick closing of approximately a couple weeks. Furthermore, hard money lenders are able to do lending up to 70% LTV of the home value, as identified by a credentialed third-party evaluator. Some people consider hard money real estate loans to be more expensive than ordinary financing, considering lending rates of such loans commonly start out at 10%. But the term lengths for these loans are quite short, which means the rate is less important. The price of such short-term loans should be considered much like every other expense that you would need to meet for the project. And once you've sold the home, recouping this expense is the exact same as recouping the expense for all the kitchen and bath improvements you performed.

What's more, it's easy to be eligible for a hard money mortgage, regardless of whether your credit score is not that superb. Rather than focusing primarily on the borrower's credit score or income, Morristown hard money lenders, who can be a private company or an individual, say yes to a loan after assessing the home value, its marketability, where it is located, and the odds of recouping their capital should they have to foreclose the loan. Several other criteria that affect an individual's eligibility for a hard money real estate loan include how much he is in a position to put towards a down payment, his prior experience being a real estate investor, and selling price of comparable, just recently sold residences in the area.

If you happen to have stumbled on a really great fixer-upper with a significant potential for returns, you have also found yourself a hard money lender in Morristown that is willing to provide funding for your flipping venture. Fill out the form or give us a call and let's discuss the property or properties you have in mind.