An incredible buy on a fix and flip opportunity located in an excellent subdivision all of a sudden shows up — sounds so good that it's difficult to believe. Expert house flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of $40-$50k as an average on more than one occassion. And sure, they are helped in a big way as a result of their professional knowledge, auction expertise and knowledge of hard money loans. Having said that, you have recently been cultivating your rehab and remodeling skills, have a very good general contractor ready to go and are certain that you can do a bang up job on this property.

But money can be a separate problem entirely. A traditional lender, for instance a bank, takes a minimum of one to two months to authorize the loan and release the monies. So if you are wishing for a fast closing, it is important you understand or know that this may set you back by weeks, causing you to lose out on the opportunity.

Furthermore, in case you have a less-than-perfect credit score or don't receive a consistent income source, it can be tougher for you to be eligible for a bank financing, seeing the more stringent loan requirements banks have put in place recently. So will a lack of funding prevent you from pursuing your aspirations? Definitely not, seeing as you always have the O'Fallon hard money loan alternative.

If you get a hard money home loan in O'Fallon, you have access to what is perhaps most important to real estate transactions throughout the country — a fast closing of approximately two weeks. Furthermore, hard money lenders are capable of doing lending up to 70% LTV of the home value, as calculated by a professional third-party evaluator. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank financing. But when you understand these are not long-term mortgage loans, the rate of interest can be misleading. Short-term loans of a couple months to a handful of years are best approached as cost of capital, very much like any other financial outlay related to a project. After you renovate and resell the home, recouping this expense is the same as recouping the cost of the stainless steel appliances you placed into the home.

Apart from this, hard money mortgages are not hard to qualify for, even if you posses poor credit. O'Fallon hard money lenders don't take on a loan exclusively based on the customer's credit score — rather they also look at the home, its location and value, and the home's capability to pay back the loan on its own. On top of that, if the individual have proven experience in comparable real estate projects, can put down cash for a down payment, and the price of comparative houses in the area works in his favor, he has got a good chance of being eligible to get a hard money real estate loan.

So in case you have found an excellent home to flip with a huge chance of returns, you've also stumbled upon a hard money lender in O'Fallon who's prepared to provide funding for your flipping projects. Submit the contact form or call us to talk about the property or properties you have in mind.