Imagine you've come across this truly good bargain for a fix and flip property in a great location, and you are either a seasoned real estate investor or a newbie who really wants to try his hand at flipping. Professional property flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping series, are able to bring in a gain of $40-$50k on the majority of projects. And indeed, they are aided in a major way via their professional knowledge, auction expertise and knowledge of hard money loans. Still, your rehab and renovation skills aren't that bad either — in any case, you've already identified the right licensed contractor to handle the job.

But where do you find the needed financing for home flipping? A typical lender, for instance a bank, takes at the very least 1 to 2 months to authorize the loan and provide the capital. Since most sellers would rather have a fast closing, it may be advisable to begin looking for some other financing options.

To add to it, banks have already been tightening their lending requirements as of late, rendering it more difficult for people to get a typical loan if their credit rating is not perfect or he does not have a consistent salaried occupation. So do you have to give up and forego your aspiration to venture into fix and flips? Absolutely not, given that you also have the Portage hard money loan option.

A hard money home loan in Portage gives you what's viewed as vital to many real estate sales — a fast closing of just a 2-3 weeks and at times less. Aside from that, loans are made up to 70% loan-to-value of the "as is" value, as determined by a professional appraiser. A number of people believe hard money real estate loans to be more pricey than standard loans, considering interest rates for these loans normally start out at 10%. But once you consider these loans are not long-term mortgage loans, the rate of interest may be misleading. Short-term loans of a couple of months to a few years are best looked at as cost of capital, much like any other financial outlay related to a project. And once you've finally turned the property, recouping this expense is the exact same as recouping the expense for the bathroom or other updates you did.

Moreover, even a person with poor credit can still be eligible for a hard money mortgage. The customer's credit score is not the exclusive determining factor for Portage hard money lenders — additionally, they analyze the property, its market value, its location, and its capacity to bring back their investment if everything does not go as planned. Several other variables that have an impact on a borrower's approval for a hard money real estate loan can include how much money he is able to put into a down payment, his previous experience being a real estate investor, and price of comparative, fairly recently sold homes in the neighborhood.

So should you run into a really good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in Portage, in a position to loan you the funds that you need. Fill out the form or call us and let's talk about the property or properties you have in mind.