An outstanding buy on a fix and flip property in an excellent area of the city suddenly turns up — seems too good to be true. You may have heard that veteran house flippers, similar to the husband and wife on HGTV's Flip or Flop, turn an impressive average return close to forty to fifty thousand dollars. Naturally, you also are aware that their results are credited to the simple fact that they are industry experts, are well versed in hard money loans, they understand market trends really well and additionally, they are good at working a public auction to buy their homes at a good deal. That said, you've also been cultivating your rehab and renovation knowledge, have a very good licensed contractor ready for the project and are confident that you will be able to do a bang up job on this property.

But where do you obtain the needed funding for home flipping? A typical lending institution, say for example a bank, takes at a minimum 1-2 months to authorize the mortgage and hand over the capital. Given that sellers would rather have a fast closing, it may be advisable to begin searching for some other funding options.

With banks introducing tougher loan criteria in the last few years, it's become much harder for a self-employed person to get a mortgage loan, especially when his credit score is not flawless. So will a shortage of funds prevent you from sticking with your ambitions? Never, because you can always go the Port Jervis, New York hard money loan route to finance your home flipping project.

A hard money home loan in Port Jervis gives you what is perhaps most essential to real estate investors — a fast closing time of as little as 2 weeks. Besides that, hard money lenders will often consent to funding up to 70% LTV of the property or home value, as assessed by a professional third-party appraiser. With the loan rates starting off near 10%, hard money real estate loans may seem, at first, to be higher in price compared to traditional bank financing. But usually, the interest rate is not as pertinent for these loans, because they are not long-term financing. Short-term loans of several months to a few years are best looked at as cost of capital, very much like all other costs associated with a project. And as soon as you've sold the house, recuperating this expense is identical to recovering the expense for all the kitchen and bath updates you performed.

Moreover, even someone with weak credit will be able to qualify for a hard money mortgage. Port Jervis hard money lenders don't authorize a loan strictly judging by the applicant's credit score — instead they will evaluate the property, where it is located and how much it is worth, and the property's ability to pay back the financing without the help of the person. Adding to this, if the borrower can demonstrate prior experience in comparable real estate projects, can place down money towards the down payment, and the value of comparative properties in the vicinity works to his benefit, he has a really good shot of qualifying to get a hard money real estate loan.

So in the event you run into a very good and profitable flipping opportunity, be assured you will have a hard money lender in Port Jervis, in a position to lend you the cash you may need. Complete the form or call us and let's discuss your property.