Suppose that you've run into this truly good deal for a fix and flip property located in a great location, and you're either a seasoned real estate investor or a first-timer who wants to try his hand at flipping. Many people know that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, are able to make a typical profit of $40,000 to $50,000 in their rehab business. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have played a big role in their success. Having said that, you've likewise been cultivating your rehab and renovation skills, have got a contractor arranged and are confident that you're capable of doing a stellar job on this property.

But money is often a different question altogether. For those who approach a common lender, much like a bank for financing, it's likely going to take at least 30-60 days for your approval to be completed and the funds to be furnished. Thus if you are anticipating a fast closing, you need to understand or know that this could cost you weeks, making you miss out on the house.

As well as this, if you have a less-than-perfect credit situation or don't have a regular income source, it may be more challenging to be eligible for bank financing, with the more stringent loan guidelines banks have issued recently. So do you have to admit defeat and forego your aspiration to embark into real estate? By no means, on the grounds that you could always go the Portage hard money loan route to pay for your rehab project.

A hard money home loan in Portage offers you what's viewed as crucial to many real estate deals — a very fast closing of just a 2-3 weeks and sometimes even less. Additionally, loan amounts can be made up to 70% loan-to-value of the as-is home's valuation, as calculated by a licensed appraiser. Some people regard hard money real estate loans to be higher in price than ordinary loans, because the interest rates for these loans generally start at 10%. But when you consider these loans are not long-term loans, the rate of interest can be misleading. Short-term loans of several months to a few years are best looked at in terms of cost of capital, very much like any other expenditure related to a project. And when you have sold the property or home, recuperating this expense is identical to recuperating the expense for the bathroom or other upgrades you performed.

Moreover, even someone with poor credit will be able to be eligible for a hard money mortgage. Portage hard money lenders don't approve a loan exclusively according to the person's credit score — rather they also evaluate the property, its value and location, and the home's ability to pay back the financing independent of the borrower. Other variables that affect a customer's eligibility for a hard money real estate loan include how much money he can put towards a down payment, his former experience as a real estate investor, and price range of comparable, recently sold homes in the neighborhood.

So in case you have stumbled on an excellent home to flip with a significant prospect of returns, you have also stumbled upon a hard money lender in Portage who's ready to fund your rehab venture. Submit the form on this page or get in touch with us via phone to discuss your project.