Suppose you've stumbled upon this excellent deal on a fix and flip property located in an ideal location, and you happen to be either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. You may have heard that professional house flippers, much like the couple on HGTV's Flip or Flop, have a remarkable average return of around $40,000 – $50,000. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction talents have played an important part in their successes. Nevertheless, you are certain that your impressive rehab and remodeling talents will help you do a superb job for this house — what's more, you already have lined up one of the premier general contractors in town to take on this job.

But financing is a different issue altogether. A standard lender, say for example a bank, takes at a minimum one to two months to approve the mortgage and release the funds. With the sellers looking for a fast closing, that doesn't appear like a great idea to you in the slightest.

With banks introducing tougher loan guidelines in the past several years, it has become more difficult for a self-employed person to find a home loan, especially when his credit circumstances are not perfect. So does this mean you are without an option, but to drop your ambition of getting into rehabbing? Never, because you can always use the Reading hard money loan approach to pay for your home flipping project.

If you decide to opt for a hard money home loan in Reading, you have access to what is probably most important to real estate transactions across the country — a quick closing of approximately fourteen days. Also, hard money lenders can approve lending up to 70% LTV of the home's valuation, as established by a credentialed third-party appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank lending options. But when you consider these are not long-term mortgage loans, the rate may be misleading. When it comes to short-term loans of 1 or 2 years or even less, you should think of them just like you would other expenditures for the project. And as soon as you've flipped the house, recouping this expense is the exact same as recuperating the expense for all the bathroom improvements you performed.

Aside from that, hard money mortgages are easy qualifying, whether or not you have got a bad credit score. Reading hard money lenders don't approve a loan solely judging by the customer's credit score — instead they also examine the home, its valuation and location, and the home's capability to pay back the financing without the help of the applicant. Adding to this, if the individual have proven experience in similar real estate endeavors, can place down money for the down payment, and the value of similar houses in the vicinity works to his benefit, he will have a really good shot of being approved for a hard money real estate loan.

So if you have stumbled on a wonderful home to flip with a huge potential for returns, you've also found yourself a hard money lender in Reading that's ready to provide financing for your fix and flip venture. Fill out the contact form on this page or give us a call and let's discuss the property you have in mind.