Imagine you've run into this truly good deal on a fix and flip property located in a terrific location, and you are either a seasoned real estate investor or a newbie who hopes to try out flipping homes. You've probably heard that competent property flippers, much like the husband and wife on HGTV's Flip or Flop, turn a remarkable average return of around forty to fifty thousand dollars. No need to explain that their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have been major factors to their results. Still, your rehab and remodeling knowledge isn't bad either — aside from that, you've already located a good contractor to take on this home.

But where do you find the necessary capital for home flipping? A conventional lender, for instance a bank, takes at the very least 1-2 months to approve the financing and hand over the cash. So if you will be hoping for a fast closing, it's important to recognize that this may cost you a couple weeks, making you lose out on the sale.

What's more, if you have a less-than-perfect credit rating or don't have a conventional source of income, it is usually tougher to qualify for a bank loan, seeing the more stringent loan requirements banks have introduced recently. So will a shortage of financing keep you from sticking with your dream? Definitely not, because you always have the Overland Park hard money loan alternative.

A hard money home loan in Overland Park gives you what is probably most essential to real estate investors — a fast closing time of as little as two weeks. In addition, the LTV value can range up to 70% of the home's valuation, as determined by a certified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as more expensive than bank loans. But once you understand these loans are not long-term loans, the interest rate tends to be misleading. When it comes to short-term loans of several years or less, you should think about them just like you would other expenditures for your project. After you fix up and unload the home, recovering this expense is just like recuperating the one for new kitchen appliances you put in the home.

Furthermore, even someone with weak credit can still be eligible for a hard money mortgage. As an alternative for focusing strictly on the borrower's credit score or wages, Overland Park hard money lenders, who could be a private company or an individual person, say yes to a loan as a result of assessing the property value, how easy it will be to market, where it is located, and the possibility of recuperating their capital in the event of foreclosure. Several other criteria that impact a customer's acceptance for a hard money real estate loan can include how much he can put into a down payment, his former experience as a real estate investor, and price of comparable, just recently sold residences in the neighborhood.

So in case you have found a really great real estate opportunity with a significant potential for returns, you have also discovered a hard money lender in Overland Park who's happy to fund your fix and flip venture. Fill out the form or call us and let's discuss your project.