Suppose you've come across this truly good bargain on a fix and flip property in an ideal location, and you are either an experienced real estate investor or a newbie who wants to try out flipping homes. Everybody knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can readily make a typical profit margin of $40,000 to $50,000 in their rehab business. And without a doubt, they are helped in a major way by their professional know-how, auction skills and knowledge of hard money loans. Still, your rehab and renovation knowledge isn't that bad either — aside from that, you've already found an ideal licensed contractor to start this job.

But where do you find the necessary funding for flipping? A typical lending institution, like for example a bank, takes no less than one to two months to approve the mortgage and provide the funds. With the sellers wanting a fast closing, that doesn't appear to be a good option to you whatsoever.

With banks establishing tougher loan guidelines in the recent past, it's become more challenging for a self-employed person to get a home loan, particularly if his credit rating is not optimal. So does this mean you have no option, but to give up your aspiration of venturing into the fix and flip business? By no means, considering that you can always use the Ridgewood hard money loan approach to fund your flipping project.

A hard money home loan in Ridgewood provides what's probably most desired by real estate investors — a fast closing time period of as few as 2 weeks. In addition, the LTV value can reach up to 70% of the home's valuation, as determined by a certified appraiser. Some people consider hard money real estate loans to be costlier than standard loans, since the interest rates for these loans normally start off at 10%. But if you consider these are not long-term mortgage loans, the interest rate can be misleading. The price of such short-term loans should be considered much like any other expense that you would encounter in the course of the project. Once you have turned the home and have made a successful profit, you can recover this expense from the house — very much like recuperating the money spent on the brand-new home appliances that you've installed.

Apart from this, hard money mortgages are easy qualifying, even if you have poor credit. The borrower's credit score isn't the lone determining factor for Ridgewood hard money lenders — they also look at the property, its market value, where it is located, and its potential to earn back their financial commitment if things should not go as intended. Adding to that, if the applicant have proven experience in comparable real estate projects, can put down cash for the down payment, and the price of comparative houses in the neighborhood works in his favor, he has got a really good shot of qualifying for a hard money real estate loan.

So if you have stumbled on a wonderful real estate opportunity with a significant probability of returns, you have also discovered a hard money lender in Ridgewood that's happy to finance your flipping project. Fill out the contact form or call us and let's talk about your property.