An incredible bargain on a fix and flip opportunity in a very good area of the city all of a sudden shows up — seems too good to be true. You've probably heard that competent property flippers, similar to the married couple on HGTV's Flip or Flop, enjoy a remarkable average return close to forty to fifty thousand dollars. And yes, they are helped in a big way by their professional know-how, auction skills and familiarity with hard money loans. That said, you have recently been developing your rehab and renovation knowledge, have a licensed contractor lined up and are certain that you will be able to do an impressive job on this property.

But where can you obtain the needed funding for flipping? If you meet with a common lending institution, such as a bank for funding, it's in all likelihood going to take, at a minimum, four to eight weeks for your approval to come through and your money to be accessible. With the sellers seeking a fast closing, that does not seem like a great idea to you in the slightest.

On top of this, banks have been tightening their lending criteria as of late, making it difficult for people to get a regular loan if their credit situation is not flawless or he doesn't have a regular salaried occupation. So will inadequate funds prevent you from sticking to your dream? By no means, because you can always use the Port Jefferson, New York hard money loan approach to finance your home renovating project.

If you put in an application for a hard money home loan in Port Jefferson, you will get what's perhaps most vital to real estate transactions across the country — a very fast closing of about 14 days. Further, financing is made up to 70% loan-to-value of the as-is value, as determined by a licensed appraiser. With interest rates starting off near 10%, hard money real estate loans might seem, initially, to be more pricey in comparison with conventional bank financing. But usually, the lending rate isn't as relevant for these loans, since they will never be long-term financing. The cost of such short-term loans should be considered on par with every other expenditure that you might encounter in the course of the project. Right after you renovate and sell the house, recuperating this expense is no different than recuperating the money you spent for new kitchen appliances you put in the house.

Aside from that, hard money mortgages are easy qualifying, even in the event you posses poor credit. Port Jefferson hard money lenders do not take on a loan solely judging by the borrower's credit score — rather they will examine the property or home, where it is located and what it is worth, and the property's capacity to pay back the loan by itself. Additional criteria that have an impact on an individual's acceptance for a hard money real estate loan can include how much he is able to put towards a down payment, his prior experience being a real estate investor, and price range of comparative, recently sold homes in the neighborhood.

So if you have found an excellent home to flip with a significant probability of returns, you have also stumbled upon a hard money lender in Port Jefferson that is prepared to provide financing for your fix and flip project. Enter your info into the contact form or give us a call to talk about your property.