There's this amazing possibility for renovating and flipping this nice outdated property or home in a good location and it seems a lot like the deal you've been wanting for quite a while. You've heard that veteran house flippers, similar to the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit near forty to fifty thousand dollars. Undoubtedly, you also know that their results are attributed to the fact that they are industry experts, are proficient in hard money loans, they understand the market really well and they also know how to work an auction to purchase their homes at a good deal. Nonetheless, your rehab and renovation skills aren't bad either — in any case, you have already identified a suitable licensed contractor to take on this project.

But where can you obtain the necessary funding for flipping? If you opt for a traditional loan via a bank, you will wind up waiting around somewhere around 30-60 days before the money is authorized and the funding is readily available. With the sellers looking for a fast closing, that doesn't appear to be a wise idea to you in the slightest.

With banks introducing tougher loan requirements in the last few years, it is now harder for a self-employed individual to get a mortgage loan, particularly if his credit score is not optimal. So should you admit defeat and forego your desire to get into the real estate market? Never, due to the fact you could always go the Pittsburgh hard money loan route to pay for your home flipping project.

A hard money home loan in Pittsburgh offers what's viewed as crucial to most real estate transactions — a quick closing of just a couple of weeks and at times less. Further, loan amounts can be done for up to 70% loan-to-value of the as-is house value, as determined by a professional appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as costlier than bank financing. But the lengths of these loans tend to be rather short, which means the interest rate is much less important. Short-term loans of a couple of months to a handful of years are best understood as cost of capital, very much like every other expenditure involved with a project. And when you've turned the home, recouping this expense is comparable to recuperating the expense for all the bathroom or other updates you did.

Apart from this, hard money mortgages are not hard to qualify for, even in the event you have a weak credit score. Rather than focusing only on the applicant's credit score or source of income, Pittsburgh hard money lenders, who may be a private company or an individual person, say yes to a loan after examining the property value, how easy it will be to market, its location, and the odds of getting back their capital in the event of foreclosure. Several other factors that affect an individual's approval for a hard money real estate loan can include the amount he is in a position to put into a down payment, his prior experience as a real estate investor, and price range of comparable, fairly recently sold homes in the vicinity.

So in the event you come across a really good and profitable investment opportunity, rest assured you'll have a hard money lender in Pittsburgh, equipped to lend you the capital you may need. Submit the form on this page or call us and let's discuss your project.