A remarkable buy on a fix and flip opportunity located in an excellent area of the city shows up out of the blue — seems so good that it is difficult to believe. Professional residential home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are capable of earning a gain of $40-$50k on most projects. Naturally, you also realize that their results are due to the simple fact that they're professionals, are proficient in hard money loans, they know market trends quite well and furthermore, they know how to work an auction to purchase their homes at a reasonable price. Still, your rehab and renovation skills aren't bad either — besides, you've already located an ideal contractor to tackle this job.

But how exactly do real estate investors obtain funds? For those who meet with a customary lender, like a bank for a loan, it's more than likely going to take at least thirty to sixty days for your acceptance to be completed and your funds to be furnished. So if you will be expecting a fast closing, you need to understand that this may cost you a couple of weeks, making you miss out on the opportunity.

As well as this, if you have a sub-optimal credit situation or do not receive a conventional source of income, it can be tougher to be eligible for a bank loan, considering the tighter loan guidelines banks have put in place recently. So must you give up and forego your ambition to venture into real estate? Certainly not, because you also have the Mount Penn hard money loan alternative.

A hard money home loan in Mount Penn can provide what is considered essential to many real estate deals — a fast closing of just a few weeks and at many times even less. Also, hard money lenders will often consent to lending up to 70% LTV of the property's valuation, as assessed by a credentialed third-party appraiser. With rates starting out around 10%, hard money real estate loans may look, initially, to be more pricey compared to traditional bank loans. But the time frames of these loans tend to be rather short, which makes the rate much less significant. The price tag on such short-term loans ought to be evaluated on par with any other financial outlay that you will encounter in the course of the project. Once you've resold the house and have made a good profit, you're able to reclaim this expense from the house — much like recouping the money spent on the brand-new kitchen appliances that you've installed.

Apart from this, hard money mortgages are easy qualifying, even if you posses a low credit score. Mount Penn hard money lenders don't take on a loan exclusively based on the customer's credit score — rather they additionally analyze the property or home, its location and value, and the home's capacity to pay back the financing independent of the applicant. Other criteria that have an impact on a person's acceptance for a hard money real estate loan include how much money he can put into a down payment, his past experience as a real estate investor, and selling price of comparative, fairly recently sold residences in the area.

Searching for a hard money lender in Mount Penn to finance your real estate project is not hard, assuming that the opportunity that lies before you is promising and offers a good prospect for returns. Fill out the form or give us a call and let's discuss the property you have in mind.