A fantastic deal on a fix and flip property in a nice area of the city suddenly shows up — seems too good to be true. You've probably heard that professional property flippers, much like the husband and wife on HGTV's Flip or Flop, have a remarkable average profit margin near $40,000 – $50,000. And indeed, they are helped in a major way as a result of their professional know-how, auction abilities and familiarity with hard money loans. Nevertheless, you're certain that your impressive rehab and remodeling knowledge will help you do a quality job on this property — additionally, you already have lined up one of the finest contractors in the area to handle the job.

But funding is a different issue altogether. A traditional lending institution, like for example a bank, takes at a minimum 1 to 2 months to approve the financing and deliver the monies. With all the home owners looking for a fast closing, that doesn't appear to be a good option to you in the slightest.

On top of this, banks have already been tightening up their lending standards in recent years, which makes it challenging for people to receive a typical loan if their credit score is not flawless or he does not have a regular salaried occupation. So does this mean you have no option, but to abandon your aspiration to venture into rehabbing? Under no circumstances, especially when New Richmond hard money loans will assist you to accomplish many amazing things in real estate.

A hard money home loan in New Richmond promises what is perhaps most essential to real estate investors — a fast closing time of as little as two weeks. In addition, the LTV value can go up to 70% of the property value, as estimated by a competent appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be costlier than bank financing. But usually, the interest rate isn't as useful a measure for these loans, simply because they aren't long-term loans. The price of such short-term loans ought to be viewed much like any other expenditure that you would encounter during the project. Once you've sold the home and have made a successful return, you can recover this expense from the home — very much like recovering the money necessary for the brand-new home appliances that you have installed.

In addition, even an individual with low credit will be able to qualify for a hard money mortgage. The person's credit score will not be the sole deciding factor for New Richmond hard money lenders — additionally, they examine the house, how much it is worth, its location, and its ability to return their investment if things should not go as intended. Adding to this, if the person can demonstrate past experience in comparable real estate ventures, can place down money for the down payment, and the value of similar homes in the neighborhood works in his favor, he has a good shot of qualifying for a hard money real estate loan.

Searching for a hard money lender in New Richmond to fund your real estate project is not hard, as long as the opportunity that lies before you is promising and has a good potential for returns. Fill out the contact form on this page or call us to talk about your property or properties.