An incredible bargain on a fix and flip property located in an excellent subdivision suddenly turns up — sounds so good that it is difficult to believe. You may have heard that professional house flippers, much like the married couple on HGTV's Flip or Flop, turn a remarkable average profit margin near forty to fifty thousand dollars. Without question, their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction skills have been major factors to their successes. Still, your rehab and remodeling knowledge isn't bad either — in any case, you have already located a good contractor to handle this project.

But how can you obtain the needed financing for home flipping? For those who get in touch with a standard lending institution, like a bank for a mortgage loan, it in all likelihood will take no less than thirty to sixty days for your acceptance to come through and your money to be dispersed. With all the sellers wanting a fast closing, that doesn't appear like a wise idea to you at all.

On top of this, banks have already been tightening their lending standards in recent years, rendering it more hard for a person to get a regular loan if their credit situation is not perfect or he is lacking a consistent salaried occupation. So does that mean you are without an option, but to drop your aspiration of getting into home flipping? Never, on the grounds that you could always go the New Baltimore hard money loan route to finance your rehab project.

A hard money home loan in New Baltimore gives you what's considered vital to many real estate sales — a fast closing of just a few weeks and at many times even less. Additionally, financing can be made up to 70% loan-to-value of the "as is" property value, as calculated by a qualified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be higher priced than bank lending products. But the time frames of these loans tend to be quite shorter, which means the rate is far less important. The price tag on such short-term loans should be looked at on par with every other cost that you would have to meet for the project. Once you have sold the house and have made a positive return, you're able to reclaim this expense from the property — similar to recovering the money necessary for the brand-new home appliances that you have installed.

Also, it's easy to obtain a hard money mortgage, even in the event your credit rating is not that extraordinary. New Baltimore hard money lenders don't take on a loan strictly on the basis of the person's credit score — instead they will evaluate the property or home, where it is located and how much it is worth, and the property's capacity to pay back the financing by itself. The amount that an individual can put down in advance for the property or home, how much experience he has in real estate investing, and selling price of comparative properties in the vicinity are additional factors that go into ascertaining an applicant's qualification for a hard money real estate loan.

So should you run into a really good and lucrative investment opportunity, rest assured you will have a hard money lender in New Baltimore, willing to loan you the capital that you need. Fill out the contact form or get in touch with us via phone to discuss your property or properties.