Suppose that you've stumbled upon this excellent bargain on a fix and flip property you found in an ideal location, and you're either a seasoned real estate investor or a newbie who really wants to try his hand at flipping. Expert home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a profit of $40-$50k on a regular basis. It's fair to say their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction talents have been major factors to their success. Nonetheless, your rehab and renovation knowledge isn't that bad either — besides, you've already identified an ideal licensed contractor to start this project.

But where do you get the needed funding for home flipping? For those who approach a standard lender, such as a bank for funding, it's very likely going to take, as a minimum, 4-8 weeks for the acceptance to be completed and your money to be given out. So if you will be wishing for a fast closing, you must recognize that this may cost you a couple weeks, making you miss out on the home.

With banks bringing in more challenging loan requirements in recent times, it is much harder for a self-employed person to find a home loan, particularly if his credit circumstances are not flawless. So does this mean you have no option, but to give up your ambition of venturing into flipping? Certainly not, given that you also have the Port Chester hard money loan alternative.

If you should get a hard money home loan in Port Chester, you'll get what is possibly most important to real estate offers throughout the country — a quick closing of about two weeks. Also, hard money lenders can approve loans up to 70% LTV of the home's valuation, as established by a professional third-party evaluation. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank loans. But the time frames of these loans are rather short, making the rate much less important. Short-term loans of several months to a few years are best thought of as cost of capital, the same as any other expenditure involved with a project. When you have resold the property and have made a successful financial gain, you can reclaim this expense from the property — similar to recuperating the money necessary for the brand-new kitchen appliances that you have installed.

In addition, even an individual with low credit can easily qualify for a hard money mortgage. Rather than focusing strictly on the applicant's credit score or source of income, Port Chester hard money lenders, who can be a private company or an individual person, approve a loan as a result of evaluating the home value, its salability, where it is located, and the likelihood of recovering their money should they have to foreclose the loan. Adding to this, if the applicant can demonstrate past experience in comparable real estate projects, can place down money towards the down payment, and the value of equivalent houses in the area works in his favor, he stands an excellent chance of being approved to obtain a hard money real estate loan.

Finding a hard money lender in Port Chester to fund your flipping business is not very challenging, provided that the opportunity that lies ahead of you is promising and offers a strong potential for returns. Enter your info into the contact form on this page or give us a call to discuss your property or properties.