Suppose you've stumbled upon this really great bargain on a fix and flip property you found in an ideal location, and you're either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. You've probably heard that competent house flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average return close to $40,000 – $50,000. Of course, you also know that their success can be attributed to the simple fact that they're industry experts, are well versed in hard money loans, they understand the marketplace quite well and they also know how to work a public auction to buy their houses at an appropriate deal. With that being said, you have likewise been brushing up your rehab and remodeling knowledge, have a very good general contractor lined up and are positive that you can do a stellar job for this house.

But financing is often a separate issue altogether. For those who apply for a regular loan from the bank, you will end up waiting around somewhere around 4-8 weeks until eventually the loan is approved and your funding is accessible. Since most sellers prefer a fast closing, it may be advisable to begin seeking out additional financing alternatives.

Moreover, if you have a less-than-perfect credit situation or don't receive a consistent income source, it may be more challenging to obtain bank financing, considering the tighter loan requirements banks have issued lately. So will a lack of funding keep you from sticking with your aspirations? Not at all, especially when Parma hard money loans will assist you to accomplish many amazing things in real estate.

A hard money home loan in Parma gives you what's probably most desired by real estate investors — a quick closing time period of as few as 2 weeks. Additionally, loan amounts can be done for up to 70% loan-to-value of the as-is house value, as determined by a qualified appraiser. With the lending rates starting at about 10%, hard money real estate loans may look, at first, to be more costly compared to conventional bank financing. But if you appreciate that these loans are not long-term mortgage loans, the rate of interest may be misleading. When it comes to short-term loans of a few years or less, you should think of them identical to any sort of other expenditure for the project. After you rehab and resell the house, recovering this expense is no different than recouping the expense for stainless steel appliances you installed in the home.

Besides, hard money mortgages are not difficult to qualify for, even when you have poor credit. The customer's credit score will not be the exclusive determining factor for Parma hard money lenders — they also analyze the home, its market value, where it is located, and its potential to bring back their investment if things should not go as intended. Adding to this, if the borrower have proven experience in comparable real estate endeavors, can place down cash for the down payment, and the value of similar homes in the neighborhood works to his benefit, he has a good likelihood of being approved for a hard money real estate loan.

Locating a hard money lender in Parma to finance your fix and flip endeavor is not hard, as long as the opportunity before you is promising and boasts the right prospect for returns. Complete the contact form on this page or call us and let's discuss your property or properties.