Suppose you've run across this truly good deal for a fix and flip property you found in a great location, and you're either an experienced real estate investor or a newbie who is looking to try his hand at flipping. Professional home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are able to earn a profit of $40-$50k as an average on more than one occassion. And sure, they are helped in a major way due to their professional knowledge, auction expertise and understanding of hard money loans. Having said that, you've recently been developing your rehab and renovation knowledge, have a licensed contractor lined up and are positive that you will be able to do a stellar job on this home.

But how exactly can real estate investors obtain funds? A typical lending institution, say for example a bank, takes no less than one to two months to consent to the mortgage and provide the cash. Thus if you are looking for a fast closing, you must understand or know that this may set you back by a couple weeks, making you lose out on the sale.

With banks introducing tougher loan criteria in recent years, it's become more challenging for a self-employed person to find a mortgage loan, especially if his credit circumstances are not perfect. So will a shortage of financing stop you from pursuing your aspirations? Under no circumstances, particularly while Rigby hard money loans can help you achieve many amazing things in the real estate world.

A hard money home loan in Rigby gives you what's considered imperative to most real estate deals — a fast closing of just a 2-3 weeks and at times even less. Besides that, hard money lenders are able to do loans up to 70% LTV of the property value, as identified by a certified third-party evaluator. With the interest rates starting out at about 10%, hard money real estate loans may seem, initially, to be more pricey as compared with conventional bank loans. But in reality, the interest rate is not as relevant for these loans, because they are not long-term loans. When it comes to short-term loans of several years or less, you should think of them just like you would other expenses for the project. Right after you remodel and resell the house, recuperating this expense is just like recuperating the cost of the new kitchen appliances you put in the house.

In addition, even a person with weak credit can still qualify for a hard money mortgage. Instead of focusing only on the person's credit score or net income, Rigby hard money lenders, who can be a privately owned company or an individual, authorize a loan as a result of examining the home value, how easy it will be to market, where it is located, and the odds of recouping their money should they have to foreclose the loan. How much a borrower can put down beforehand for the property, how much experience he has in real estate investing, and price range of comparable properties in the same area are various other details that go into establishing an individual's eligibility for a hard money real estate loan.

So if you have found a really great fixer-upper with a high probability of returns, you've also found yourself a hard money lender in Rigby who is ready to provide financing for your fix and flip projects. Fill out the form on this page or give us a call and let's discuss your project.