Imagine you've come across this truly good bargain on a fix and flip property you found in an ideal neighborhood, and you're either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Many people know that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, can turn an average profit of $40,000 to $50,000 on their flips. And without a doubt, they are helped in a big way as a result of their professional experience, auction skills and knowledge of hard money loans. Nonetheless, your rehab and renovation skills aren't bad either — aside from that, you've already located a suitable building contractor to take on this project.

But where do you find the necessary funding for home flipping? For those who approach a standard lending institution, like a bank for a mortgage loan, it can take no less than thirty to sixty days for the acceptance to come through and your funds to be furnished. So if you will be wishing for a fast closing, it's important to be aware that this may cost you weeks, making you miss out on the home.

To add to it, banks have already been tightening up their lending standards in recent times, rendering it more difficult for a person to receive a typical loan if their credit situation is not perfect or he does not possess a regular salaried job. So will a shortage of financing keep you from following your ambitions? Certainly not, because you always have the New Paltz, New York hard money loan alternative.

A hard money home loan in New Paltz provides you with what's possibly most essential to real estate investors — a very fast closing time period of as few as 2 weeks. Aside from that, loans can be done for up to 70% loan-to-value of the "as is" house's valuation, as determined by a professional appraiser. Some individuals believe hard money real estate loans to be higher priced than regular financing, since the interest rates of such loans usually start at 10%. But when you appreciate that these are not long-term mortgage loans, the rate of interest can be misleading. When it comes to short-term loans of a few years or less, you should consider them much like you would other expenses for your project. Once you've sold the property and have made a positive profit, you'll be able to reclaim this expense from the property or home — just like recouping the cost of brand-new home appliances that you put in.

Furthermore, even an individual with low credit can easily be eligible for a hard money mortgage. The applicant's credit score will not be the sole determining factor for New Paltz hard money lenders — they also consider the home, its market valuation, its location, and its ability to return their investment if things do not go as planned. Other criteria that influence an individual's acceptance for a hard money real estate loan can include how much he is able to put towards a down payment, his past experience being a real estate investor, and price range of comparative, fairly recently sold residences in the neighborhood.

So in case you have found a really great real estate opportunity with a huge probability of returns, you have also stumbled upon a hard money lender in New Paltz that's happy to provide funding for your fix and flip projects. Complete the form or give us a call to discuss the project you have in mind.