A fantastic bargain on a fix and flip opportunity located in a good neighborhood all of a sudden shows up — sounds so good that it is hard to believe. You may have heard that competent property flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit near $40,000 – $50,000. And sure, they are helped in a big way due to their professional know-how, auction abilities and familiarity with hard money loans. That said, you've recently been brushing up your rehab and renovation knowledge, have got a licensed contractor ready for the project and are positive that you can do an impressive job for this property.

But how can you find the necessary financing for flipping? Should you get in touch with a common lending institution, like a bank for funding, it's in all likelihood going to take a minimum of thirty to sixty days for your approval to come through and your funds to be furnished. So if you're hoping for a fast closing, you have to understand or know that this may set you back by a couple weeks, making you miss out on the house.

With banks introducing harder loan guidelines in the last few years, it's become harder for a self-employed individual to obtain a mortgage loan, particularly if his credit circumstances are not flawless. So do you have to give up and forego your desire to venture into the real estate market? Never, on the grounds that you could always use the New Lexington hard money loan approach to pay for your rehab project.

A hard money home loan in New Lexington provides what is probably most important to real estate investors — a quick closing in as little as fourteen days. In addition, the LTV value can range up to 70% of the place's valuation, as determined by a credentialed appraiser. With the loan rates starting around 10%, hard money real estate loans may look, at first, to be more costly in comparison with conventional bank loans. But if you understand these loans are not long-term loans, the interest rate may be misleading. As it pertains to short-term loans of several years or even less, you should look at them the same as you might for every other expense for your project. When you have resold the property and have made a positive profit, you're able to reclaim this expense from the property — very much like recovering the cost of brand-new home appliances that you've installed.

Besides, hard money mortgages are easy qualifying, whether or not you have below-average credit. The person's credit score will not be the lone deciding factor for New Lexington hard money lenders — additionally, they evaluate the home, its market valuation, where it is located, and its capacity to earn back their financial commitment if things do not work out as intended. Other variables that impact an applicant's acceptance for a hard money real estate loan can include the amount he is in a position to put towards a down payment, his previous experience as a real estate investor, and price of comparative, just recently sold properties in the area.

So any time you run into a good and profitable investment opportunity, relax knowing you'll have a hard money lender in New Lexington, ready to loan you the money you need. Fill out the form on this page or get in touch with us via phone and let's talk about the property or properties you have in mind.