Imagine you've come across this really great bargain on a fix and flip property located in an ideal neighborhood, and you're either a skilled real estate investor or a newbie who wants to try out flipping houses. Many people know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can readily generate an average profit of forty to fifty thousand dollars on their home projects. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction talents have had an important part in their results. Having said that, you have recently been developing your rehab and renovation skills, have got a building contractor arranged and are confident that you will be able to do an impressive job for this home.

But where do you obtain the necessary funding for flipping? For those who approach a customary lender, such as a bank for a loan, it more than likely will take a minimum of thirty to sixty days for your approval to be completed and the money to be dispersed. Since the majority of sellers wish to have a fast closing, you may want to start looking for additional funding options.

With banks adding tougher loan standards in the past several years, it has become more difficult for a self-employed person to obtain a mortgage loan, especially when his credit situation is not optimal. So must you admit defeat and forego your aspiration to embark into real estate? Certainly not, because you also have the Port Huron hard money loan option.

A hard money home loan in Port Huron provides what's probably most important to real estate investors — a very fast closing in as few as two weeks. In addition, the LTV value can go up to 70% of the property value, as determined by a competent appraiser. A number of people believe hard money real estate loans to be costlier than regular loans, because the lending rates for such loans generally start off at 10%. But in reality, the interest rate isn't as pertinent for these loans, since they will never be long-term loans. As it pertains to short-term loans of a handful of years or less, you should think about them identical to any other expenditure for your project. And once you've flipped the property or home, recouping this expense is identical to recovering the expense for all the kitchen and bath upgrades you performed.

Besides, hard money mortgages are not hard to qualify for, whether or not you have got very bad credit. Port Huron hard money lenders do not approve a loan strictly judging by the applicant's credit score — instead they also look at the property, its location and value, and the property's capability to pay back the loan on its own. How much of their own money an applicant can put down beforehand for the property or home, how much practical experience he has in real estate investments, and selling price of equivalent properties in the area are various other factors that go into ascertaining a person's suitability for a hard money real estate loan.

So in the event you run into a really good and lucrative investment opportunity, feel comfortable knowing you'll have a hard money lender in Port Huron, willing to loan you the funds you need. Submit the form or give us a call to talk about your property or properties.