You discovered this phenomenal possibility for fixing and flipping this wonderful old home in a very good part of town and it looks a lot like the deal you've been wanting for quite some time. Professional residential home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a gain of $40-$50k on average. It's fair to say their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction talents have had a big part in their results. Nevertheless, you're assured that your impressive rehab and remodeling knowledge can help you do a superb job on this project — in addition, you've already lined up one of the best general contractors in the area to take on the job.

But capital can be a different issue entirely. When you approach a standard lending institution, like a bank for financing, it is in all likelihood going to take at least thirty to sixty days for the approval to be completed and the funds to be accessible. With all the home owners seeking a fast closing, that doesn't appear to be a wise idea to you at all.

With banks bringing in more challenging loan requirements in the past few years, it has become harder for a self-employed person to obtain a mortgage loan, especially if his credit circumstances are not optimal. So does that leave you with no other option, but to give up your ambition of getting into home flipping? Certainly not, because you also have the Petersburg hard money loan alternative.

A hard money home loan in Petersburg gives you what's possibly most important to real estate investors — a fast closing time period of as few as two weeks. Furthermore, hard money lenders are capable of doing funding up to 70% LTV of the property value, as calculated by a credentialed third-party evaluator. With the rates starting off at about 10%, hard money real estate loans might seem, at first, to be higher in price as compared with traditional bank lending products. But the time frames of these loans are much shorter, making the interest rate far less significant. The price of such short-term loans ought to be considered much like every other expenditure that you will encounter in the course of the project. Right after you remodel and unload the home, recovering this expense is the same as recouping the expense for stainless steel appliances you placed into the property.

Besides, hard money mortgages are not hard to qualify for, regardless if you posses less-than-perfect credit. Petersburg hard money lenders don't take on a loan strictly according to the person's credit score — instead they also examine the property or home, its location and value, and the property's capacity to pay back the loan independent of the borrower. The amount that a person can put down beforehand for the house, how much practical experience he has in real estate investing, and price range of equivalent homes in the same area are other details that go into analyzing an applicant's qualification for a hard money real estate loan.

So if you have stumbled on a wonderful real estate opportunity with a significant prospect of returns, you've also found yourself a hard money lender in Petersburg that's happy to provide funding for your rehab venture. Enter your info into the contact form or call us and let's talk about the project you have in mind.