There is this phenomenal possibility for rehabbing and flipping this wonderful outdated house in a fantastic part of town and it seems like the deal you have been eagerly waiting on for quite a while. Everybody knows that capable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, are able to make an average profit of $40,000 to $50,000 on their flips. No need to explain that their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction talents have been major factors to their success. With that being said, you have likewise been cultivating your rehab and renovation knowledge, have got a licensed contractor ready to go and are certain that you're capable of doing a great job for this home.

But where precisely do real estate investors find capital? If you meet with a common lending institution, much like a bank for a loan, it likely will take, at a minimum, thirty to sixty days for the approval to come through and your money to be furnished. So if you're anticipating a fast closing, it is important to understand or know that this will cost you a couple of weeks, making you lose out on the sale.

What's more, should you have a less-than-perfect credit score or don't receive a routine income, it can be more challenging to be eligible for bank financing, considering the tighter loan requirements banks have issued of late. So does this leave you with no other option, but to abandon your dream of venturing into the fix and flip business? Certainly not, seeing as you always have the Richwood hard money loan option.

A hard money home loan in Richwood can provide what is regarded as crucial to most real estate transactions — a quick closing of only a couple of weeks and oftentimes even less. Plus, the LTV value can reach up to 70% of the home's valuation, as determined by a credentialed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be more costly than bank loans. But usually, the lending rate is not as pertinent for these loans, given that they aren't long-term financing. As it pertains to short-term loans of a few years or less, you should think about them much like you would other expenses for your project. And when you have flipped the home, recouping this expense is identical to recovering the expense for the kitchen and bath improvements you did.

What's more, it's simple to obtain a hard money mortgage, even if your credit rating is not that great. Richwood hard money lenders don't authorize a loan strictly according to the borrower's credit score — instead they also assess the property, its location and value, and the home's ability to pay back the financing by itself. Adding to this, if the applicant can demonstrate prior experience in similar real estate endeavors, can put down cash for a down payment, and the value of comparable homes in the neighborhood works to his benefit, he stands a good shot of being eligible for a hard money real estate loan.

So if you have found an excellent fixer-upper with a huge prospect of returns, you've also discovered a hard money lender in Richwood who is willing to finance your fix and flip projects. Fill out the form or get in touch with us via phone and let's discuss the property or properties you have in mind.