Imagine you've stumbled upon this excellent bargain for a fix and flip property you found in an ideal location, and you are either an experienced real estate investor or a newbie who really wants to try his hand at flipping. You've heard that veteran house flippers, similar to the couple on HGTV's Flip or Flop, have a remarkable average profit margin close to $40,000 – $50,000. Undoubtedly, you also recognize that their success are due to the simple fact that they are industry experts, are well versed in hard money loans, they know market trends really well and they also know how to work an auction for getting a good price. Still, your rehab and remodeling skills aren't that bad either — in any case, you have already identified a good contractor to tackle the job.

But funding is usually a separate question entirely. A traditional lender, for instance a bank, takes no less than 1 to 2 months to authorize the financing and hand over the cash. So if you are hoping for a fast closing, you have to understand or know that this may set you back by a couple weeks, causing you to miss out on the opportunity.

With banks bringing in more challenging loan requirements in recent times, it is tougher for a self-employed person to find a home loan, particularly if his credit rating is not optimal. So must you stop trying and forego your desire to embark into fix and flips? Never, considering that you can always go the Philadelphia hard money loan route to pay for your rehab project.

If you apply for a hard money home loan in Philadelphia, you have access to what's possibly most important to real estate transactions across the country — a fast closing of roughly fourteen days. What's more, the LTV value can go up to 70% of the place's valuation, as estimated by a certified appraiser. With the rates starting off at about 10%, hard money real estate loans may appear, at first, to be more expensive in comparison with traditional bank loans. But in reality, the interest rate isn't as useful a measure for these loans, since they will never be long-term loans. The price of such short-term loans ought to be considered much like every other expense that you would have to meet for the project. After you fix up and unload the home, recovering this expense is just like recuperating the money you spent for new kitchen appliances you put in the property.

Besides, hard money mortgages are easy qualifying, even when you have less-than-perfect credit. The customer's credit score will not be the sole determining factor for Philadelphia hard money lenders — additionally, they evaluate the house, how much it is worth, its location, and its potential to return their investment if things should not work out as intended. Other criteria that impact a borrower's eligibility for a hard money real estate loan include how much he is in a position to put into a down payment, his previous experience being a real estate investor, and selling price of comparable, recently sold residences in the vicinity.

Finding a hard money lender in Philadelphia to finance your real estate project is not very challenging, provided that the opportunity that lies ahead of you is promising and has a good prospect for returns. Fill out the contact form on this page or give us a call to discuss the project you have in mind.