There's this phenomenal opportunity to renovate and flip this wonderful out of date condo in a fantastic location and it seems a lot like the deal you've been anticipating for quite a while. Most folks know that skilled professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, can readily make a typical profit margin of forty to fifty thousand dollars on their home projects. It's fair to say their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have been major factors to their success. Nevertheless, you are convinced that your impressive rehab and renovation talents will help you do a quality job on the home — additionally, you already have arranged to have one of the best building contractors in the business to take on the project.

But how do you get the necessary financing for flipping? A conventional lending institution, say for example a bank, takes at the very least 1-2 months to consent to the financing and provide the cash. Given that home owners prefer a fast closing, you may have to start searching for some other financing options.

Furthermore, for those who have a less-than-perfect credit rating or do not have a routine income, it can be tougher for you to qualify for a bank loan, with the tougher loan criteria banks have put in place lately. So will a lack of funds stop you from following your aspirations? By no means, considering that you could always use the Richmond Hill hard money loan approach to fund your home renovating project.

A hard money home loan in Richmond Hill can provide what is regarded as essential to many real estate sales — a fast closing of just a 2-3 weeks and more often than not even less. Furthermore, hard money lenders can do lending up to 70% LTV of the home's valuation, as estimated by a credentialed third-party evaluator. With the lending rates starting out around 10%, hard money real estate loans may appear, at first, to be more costly compared to traditional bank lending products. But once you consider these are not long-term home loans, the interest rate can be misleading. When it comes to short-term loans of 1 or 2 years or less, you should look at them the same as you might for any other expenditure for the project. And as soon as you've turned the home, recovering this expense is comparable to recouping the expense for all the kitchen and bath updates you performed.

Also, it isn't difficult to obtain a hard money mortgage, regardless if your credit situation is not that impressive. The person's credit score will not be the single deciding factor for Richmond Hill hard money lenders — in addition, they evaluate the house, its market value, its location, and its ability to earn back their financial commitment if things do not work out as planned. Several other criteria that affect an applicant's acceptance for a hard money real estate loan can include how much money he is able to put into a down payment, his past experience being a real estate investor, and price of comparable, recently sold homes nearby.

So should you run into an outstanding and profitable investment opportunity, be assured you will have a hard money lender in Richmond Hill, ready to lend you the funds you'll need. Enter your info into the form on this page or get in touch with us via phone to discuss your property.