There is this amazing opportunity to fix and flip this nice outdated condo in a fantastic part of town and it looks like the one you have been looking forward to for a long time. You've heard that veteran property flippers, similar to the husband and wife on HGTV's Flip or Flop, turn an impressive average profit margin close to $40,000 – $50,000. Of course, you also recognize that their great results are attributed to the simple fact that they are industry experts, are well versed in hard money loans, they know the market quite well and in addition, they know how to work a public auction to buy their properties at a good deal. Having said that, you've recently been cultivating your rehab and remodeling skills, have got a contractor ready for the project and are confident that you're capable of doing a bang up job on this property.

But money is a different issue altogether. For those who go after a traditional loan from the bank, you will have to wait somewhere around one to two months until the mortgage is approved and your money is accessible. So if you will be anticipating a fast closing, you have to be aware that this may set you back by a few weeks, causing you to miss out on the sale.

With banks adding harder loan requirements in recent times, it has become tougher for a self-employed individual to get a home loan, particularly if his credit circumstances are not perfect. So do you have to admit defeat and abandon your dream to venture off into real estate? Certainly not, considering that you could always use the Pecatonica hard money loan approach to pay for your home renovating project.

Should you obtain a hard money home loan in Pecatonica, you have access to what's probably most vital to real estate purchases across the country — a very fast closing of roughly 14 days. Also, hard money lenders are able to do funding up to 70% LTV of the home's valuation, as estimated by a qualified third-party appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank loans. But the lengths of these loans tend to be quite short, which makes the rate much less significant. Short-term loans of a couple months to a handful of years are best approached as cost of capital, very much like every other financial outlay in connection with a project. Once you have resold the home and have made a successful profit, you can get back this expense from the home — just like recovering the cost of brand-new kitchen appliances that you have installed.

Also, it's easy to obtain a hard money mortgage, even if your credit situation is not that superb. Pecatonica hard money lenders do not authorize a loan strictly based on the person's credit score — instead they will evaluate the property, its valuation and location, and the home's capacity to pay back the loan on its own. How much an individual can put down beforehand towards the property or home, his past real estate experience, and price range of comparative homes in the area are various other factors that go into determining a borrower's suitability for a hard money real estate loan.

So should you run into an outstanding and worthwhile flipping opportunity, be assured you'll have a hard money lender in Pecatonica, able to loan you the money you will need. Complete the form on this page or get in touch with us via phone and let's talk about your property or properties.