A fabulous deal on a fix and flip property in a good area of the city shows up out of the blue — sounds too good to be true. Many people know that skilled professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can readily make an average profit margin of $40,000 to $50,000 on their home projects. Of course, you also understand that their successes are attributed to the simple fact that they're industry experts, are proficient in hard money loans, they understand market trends really well and in addition, they are good at working a public auction for getting a good price. On the other hand, you're assured that your first class rehab and remodeling talents can help you do a quality job for this project — additionally, you've already lined up one of the best building contractors in town to work on this project.

But financing can be a different problem altogether. Should you go after a normal loan from the bank, you will have to wait around approximately 1-2 months until the loan is authorized and your funds are ready to go. So if you're looking for a fast closing, you have to realize that this could cost you a couple weeks, making you lose out on the house.

To add to it, banks have been tightening up their lending criteria in recent times, making it challenging for people to get a typical home loan if their credit situation is not flawless or he doesn't have a regular salaried profession. So do you have to admit defeat and abandon your dream to get into fix and flips? Definitely not, given that you also have the Rensselaer, New York hard money loan option.

A hard money home loan in Rensselaer promises what is probably most important to real estate investors — a very fast closing in as little as 2 weeks. In addition, the LTV value can range up to 70% of the home's valuation, as estimated by a competent appraiser. With the loan rates starting off at about 10%, hard money real estate loans may seem, initially, to be more expensive compared to traditional bank lending products. But if you consider these are not long-term home loans, the rate of interest may be misleading. When it comes to short-term loans of a handful of years or less, you should consider them similar to any sort of other expenditure for the project. Once you have resold the house and have made a successful financial gain, you can get back this expense from the house — similar to recouping the money spent on the brand-new appliances for the kitchen that you've installed.

Furthermore, even individuals with poor credit can easily qualify for a hard money mortgage. Rensselaer hard money lenders do not approve a loan strictly on the basis of the customer's credit score — rather they will assess the home, its location and value, and the property's ability to pay back the loan independent of the person. Other factors that have an impact on a borrower's acceptance for a hard money real estate loan include how much he can put into a down payment, his former experience as a real estate investor, and selling price of similar, fairly recently sold homes in the neighborhood.

So in case you have stumbled upon a wonderful real estate opportunity with a high potential for returns, you have also stumbled upon a hard money lender in Rensselaer who's prepared to fund your flipping project. Enter your info into the contact form on this page or call us and let's talk about your project.