Imagine you've come across this really great deal for a fix and flip property in a great neighborhood, and you are either a skilled real estate investor or a first-timer who really wants to try out flipping homes. Everyone knows that skilled professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, are able to turn a typical profit margin of forty to fifty thousand dollars on their home projects. And sure, they are aided in a major way by their professional experience, auction expertise and understanding of hard money loans. Still, your rehab and renovation skills aren't bad either — besides, you've already located a good building contractor to tackle this project.

But financing is usually a different problem entirely. A conventional lender, for instance a bank, takes no less than 1-2 months to authorize the mortgage and deliver the money. So if you happen to be hoping for a fast closing, it is important you understand that this will cost you a few weeks, making you miss out on the house.

On top of this, banks have been tightening their lending criteria in recent years, rendering it more difficult for someone to receive a regular home loan if their credit rating is not perfect or he is lacking a consistent salaried occupation. So should you stop trying and abandon your desire to get into fix and flips? By no means, due to the fact you can always go the Portsmouth hard money loan route to finance your rehab project.

Should you opt for a hard money home loan in Portsmouth, you'll get what's probably most important to real estate offers throughout the country — a fast closing of around 2 weeks. Besides that, hard money lenders are capable of doing lending up to 70% LTV of the property's valuation, as assessed by a licensed third-party appraiser. With the lending rates starting off at about 10%, hard money real estate loans may look, at first, to be higher in price as compared with traditional bank loans. But the lengths of these loans are fairly short, which makes the interest rate much less significant. As it pertains to short-term loans of 1 or 2 years or even less, you should think of them identical to any kind of other expenditure for the project. And as soon as you have finally flipped the house, recovering this expense is the exact same as recuperating the expense for all the kitchen and bath improvements you performed.

Additionally, it isn't difficult to qualify for a hard money mortgage, even in the event your credit situation is not that great. Portsmouth hard money lenders don't authorize a loan exclusively based on the applicant's credit score — rather they also look at the property or home, its location and value, and the property's ability to pay back the financing independent of the person. The total amount that a borrower can put down in advance for the home, his real estate experience, and selling price of comparable homes in the area are additional factors that go into determining a person's eligibility for a hard money real estate loan.

So in case you have stumbled on a really great real estate opportunity with a huge prospect of returns, you've also discovered a hard money lender in Portsmouth that is happy to provide funding for your rehab project. Submit the form on this page or give us a call and let's discuss the project you have in mind.