Imagine you've run into this really great deal on a fix and flip property in a terrific neighborhood, and you are either a seasoned real estate investor or a newbie who really wants to try his hand at flipping. You've heard that professional house flippers, like the married couple on HGTV's Flip or Flop, turn an impressive average return of around forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction skills have played an important role in their results. With that being said, you have also been developing your rehab and renovation skills, have a very good building contractor lined up and are certain that you're capable of doing a bang up job for this house.

But how exactly can real estate investors find funds? When you opt for a conventional loan via a bank, you will wind up waiting roughly 30-60 days before the financing is authorized and the funding is ready to go. So if you will be wishing for a fast closing, you must understand or know that this will set you back by a couple of weeks, causing you to lose out on the sale.

To add to it, banks have been tightening up their lending standards in recent years, rendering it more hard for people to obtain a traditional home loan if their credit situation is not perfect or he is lacking a regular salaried job. So should you admit defeat and forego your dream to venture off into the real estate market? By no means, because you can always go the Palmer hard money loan route to fund your flipping project.

A hard money home loan in Palmer can provide what's deemed crucial to most real estate transactions — a quick closing of just a 2-3 weeks and sometimes less. Also, hard money lenders can approve loans up to 70% LTV of the property value, as determined by a licensed third-party appraiser. With interest rates starting off near 10%, hard money real estate loans may appear, at first glance, to be higher priced when compared with traditional bank loans. But the time frames of these loans are rather short, which makes the interest rate far less significant. When it comes to short-term loans of 1 or 2 years or even less, you should think about them identical to any kind of other expenditure for your project. And when you have flipped the house, recuperating this expense is the exact same as recovering the expense for all the bathroom or other upgrades you performed.

Also, it's easy to obtain a hard money mortgage, even in the event your credit score is not that impressive. Palmer hard money lenders don't take on a loan exclusively based on the borrower's credit score — instead they will assess the property, its valuation and location, and the home's capability to pay back the financing independent of the borrower. Additional factors that influence a borrower's eligibility for a hard money real estate loan include what amount of money he can put towards a down payment, his previous experience being a real estate investor, and selling price of similar, recently sold residences in the vicinity.

If you happen to have stumbled upon a really good fixer-upper with a huge potential for returns, you have also found yourself a hard money lender in Palmer who's ready to provide financing for your rehab venture. Submit the contact form or give us a call and let's discuss the property you have in mind.