Suppose that you've come across this truly good bargain for a fix and flip property located in a terrific location, and you happen to be either an experienced real estate investor or a newbie who is looking to try out flipping houses. Expert residential home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a profit of $40-$50k as an average on multiple occasions. It goes without saying their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction talents have played a significant role in their results. However, you're certain that your impressive rehab and remodeling talents can help you do a quality job for this home — additionally, you already have lined up one of the best contractors in the area to handle this job.

But funding can be a separate issue entirely. A typical lending institution, say for example a bank, takes at a minimum 1-2 months to authorize the loan and provide the monies. So if you are wishing for a fast closing, you need to be aware that this may cost you a couple of weeks, making you lose out on the opportunity.

With banks bringing in more challenging loan standards in the past several years, it is more challenging for a self-employed individual to obtain a home loan, especially if his credit score is not optimal. So does this mean you have no option, but to drop your dream of venturing into home flipping? Under no circumstances, especially when Pitcairn hard money loans can help you realize many amazing things in the real estate market.

Should you apply for a hard money home loan in Pitcairn, you'll get what's probably most important to real estate purchases throughout the country — a very fast closing of about a couple weeks. Plus, the LTV value can range up to 70% of the property value, as estimated by a certified appraiser. With rates starting around 10%, hard money real estate loans might seem, initially, to be more pricey when compared with conventional bank financing. But the term lengths for these loans are relatively short, which makes the interest rate much less important. When it comes to short-term loans of 1 or 2 years or less, you should look at them the same as you would for every other expense for the project. Right after you fix up and sell the house, recouping this expense is the same as recuperating the expense for home appliances you put in the house.

Furthermore, even someone with poor credit can easily be eligible for a hard money mortgage. The customer's credit score will not be the single deciding factor for Pitcairn hard money lenders — they also examine the property, its market valuation, its location, and its potential to bring back their investment if things do not go as intended. Several other criteria that impact a customer's approval for a hard money real estate loan include what amount of money he is in a position to put towards a down payment, his past experience being a real estate investor, and selling price of comparative, recently sold residences in the area.

Locating a hard money lender in Pitcairn to fund your renovation project is not difficult, assuming that the opportunity before you is promising and possesses a strong potential for returns. Submit the form on this page or call us to discuss your property or properties.