Imagine you've stumbled upon this really great bargain on a fix and flip property located in an ideal location, and you happen to be either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. Expert home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a gain of $40-$50k on average. And indeed, they are helped in a major way as a result of their professional experience, auction abilities and familiarity with hard money loans. With that being said, you have also been cultivating your rehab and renovation skills, have a very good licensed contractor ready for the project and are confident that you can do a great job for this home.

But financing is a different issue altogether. When you approach a regular lender, like a bank for financing, it's more than likely going to take, as a minimum, thirty to sixty days for your acceptance to come through and your money to be given out. So if you're anticipating a fast closing, it's important to realize that this could cost you weeks, making you lose out on the home.

Furthermore, should you have an unfavorable credit situation or do not have a conventional income source, it is normally more difficult to obtain a bank loan, considering the tighter loan requirements banks have issued as of late. So does this leave you with no option, but to give up your aspiration to venture into home flipping? Absolutely not, because you also have the Patchogue, New York hard money loan option.

A hard money home loan in Patchogue gives you what's considered essential to most real estate transactions — a quick closing of just a couple of weeks and more often than not even less. Furthermore, hard money lenders can do loans up to 70% LTV of the home value, as established by a credentialed third-party evaluator. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank lending options. But in reality, the rate of interest is not as relevant for these loans, since they are not long-term financing. Short-term loans of a couple months to a few years are best approached as cost of capital, the same as any other financial outlay related to a project. And when you have turned the property or home, recuperating this expense is the exact same as recuperating the expense for the bathroom improvements you did.

Additionally, it's easy to obtain a hard money mortgage, even when your credit score is not that superb. The person's credit score will not be the sole determining factor for Patchogue hard money lenders — additionally, they consider the house, how much it is worth, where it is located, and its potential to earn back their investment if everything does not go as planned. Additional factors that influence a customer's acceptance for a hard money real estate loan include what amount of money he can put into a down payment, his past experience as a real estate investor, and price range of comparative, just recently sold properties nearby.

If you happen to have stumbled upon a really good home to flip with a high chance of returns, you have also found yourself a hard money lender in Patchogue who's ready to finance your rehab venture. Complete the contact form or get in touch with us via phone and let's discuss the property or properties you have in mind.