Suppose that you've stumbled upon this truly good deal on a fix and flip property in an ideal neighborhood, and you are either a skilled real estate investor or a newbie who is looking to try his hand at flipping. You may have heard that competent house flippers, such as the married couple on HGTV's Flip or Flop, enjoy an impressive average profit margin of around $40,000 – $50,000. Naturally, you also know that their successes can be credited to the fact that they're experts, are knowledgeable in hard money loans, they understand the market really well and they also are good at working a public auction for getting a good price. Nonetheless, your rehab and renovation knowledge isn't bad either — besides, you have already identified a suitable licensed contractor to handle this job.

But funding is a different issue altogether. If you apply for a conventional bank loan, you will wind up waiting approximately 30-60 days until the mortgage is authorized and your funds are ready. So if you are hoping for a fast closing, you need to understand that this may set you back by weeks, making you lose out on the house.

Moreover, should you have a sub-optimal credit situation or don't receive a conventional income source, it is normally tougher to obtain a bank loan, seeing the tougher loan guidelines banks have introduced of late. So does that leave you with no option, but to abandon your ambition to venture into rehabbing? Absolutely not, seeing as you always have the Norton Shores hard money loan alternative.

If you apply for a hard money home loan in Norton Shores, you will get what is possibly most vital to real estate offers across the country — a fast closing of about two weeks. Additionally, loan amounts can be done for up to 70% loan-to-value of the as-is home's valuation, as established by a professional appraiser. Some individuals regard hard money real estate loans to be costlier than customary loans, considering interest rates of such loans ordinarily start out at 10%. But when you understand these loans are not long-term home loans, the rate of interest may be misleading. Short-term loans of a couple of months to a handful of years are best looked at as cost of capital, very much like any other financial outlay in connection with a project. Once you've resold the house and have made a successful financial gain, you're able to recoup this expense from the property — very much like recouping the money necessary for the brand-new appliances for the kitchen that you installed.

Besides, hard money mortgages are not hard to qualify for, even if you have got a low credit score. The applicant's credit score is not the primary determining factor for Norton Shores hard money lenders — additionally, they evaluate the piece of real estate, its market valuation, where it is located, and its capacity to return their investment if everything does not work out as intended. On top of this, if the person can demonstrate prior experience in equivalent real estate endeavors, can put down money towards the down payment, and the price of similar homes in the area works in his favor, he will have a really good shot of qualifying to obtain a hard money real estate loan.

So in case you have stumbled upon a wonderful real estate opportunity with a significant probability of returns, you've also stumbled upon a hard money lender in Norton Shores that's prepared to provide funding for your flipping venture. Fill out the form or call us and let's talk about the project you have in mind.