Suppose that you've run across this excellent bargain for a fix and flip property you found in an ideal location, and you are either a seasoned real estate investor or a newbie who really wants to try out flipping houses. Most folks know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, are able to turn a typical profit of $40,000 to $50,000 in their rehab business. Without question, their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction skills have had a big role in their results. Still, your rehab and remodeling knowledge isn't bad either — in any case, you have already identified a good building contractor to handle the job.

But how do real estate investors obtain financing? For those who apply for an ordinary bank loan, you will wind up waiting around approximately 1-2 months until the mortgage loan is authorized and your money is readily available. So if you will be hoping for a fast closing, you must recognize that this could set you back by weeks, making you lose out on the home.

What's more, if you have a sub-optimal credit situation or don't have a regular source of income, it is usually harder to qualify for a bank loan, seeing the tighter loan criteria banks have put in place in recent times. So does that leave you with no option, but to give up your ambition to venture into home renovating? Never, on the grounds that you can always go the Portsmouth hard money loan route to finance your home flipping project.

A hard money home loan in Portsmouth provides what is probably most desired by real estate investors — a very fast closing in as few as two weeks. Plus, the LTV value can range up to 70% of the home's valuation, as estimated by a credentialed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more expensive than bank lending options. But when you consider these are not long-term home loans, the rate of interest tends to be misleading. Short-term loans of a couple of months to a few years are best understood as cost of capital, the same as any other expense in connection with a project. And once you have sold the property or home, recuperating this expense is comparable to recouping the expense for the bathroom or other upgrades you did.

Additionally, it's easy to be eligible for a a hard money mortgage, even when your credit rating is not that impressive. The customer's credit score is not the single deciding factor for Portsmouth hard money lenders — they also consider the property, its market valuation, where it is located, and its capability to earn back their financial commitment if everything does not work out as intended. Additional criteria that impact a person's eligibility for a hard money real estate loan include the amount he is able to put towards a down payment, his past experience as a real estate investor, and price of comparative, just recently sold residences in the neighborhood.

So if you have stumbled upon a wonderful home to flip with a high prospect of returns, you've also stumbled upon a hard money lender in Portsmouth who is willing to fund your fix and flip projects. Fill out the contact form or call us to discuss your property or properties.