An outstanding deal on a fix and flip property located in a good neighborhood suddenly turns up — seems so good that it is hard to believe. Everybody knows that expert professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, can readily make an average profit of $40,000 to $50,000 on their home projects. And indeed, they are aided in a big way via their professional know-how, auction skills and familiarity with hard money loans. Nevertheless, you are assured that your impressive rehab and remodeling abilities will enable you to do an outstanding job on the home — additionally, you already have arranged to have one of the most sought after general contractors in the area to take on the project.

But financing is a different problem altogether. When you approach a common lender, much like a bank for funding, it more than likely will take, as a minimum, four to eight weeks for the approval to come through and the funds to be furnished. Given that sellers favor a fast closing, you might need to begin searching for some other financing alternatives.

To add to it, banks have been tightening their lending criteria as of late, making it challenging for people to obtain a conventional loan if their credit score is not perfect or he is lacking a regular salaried job. So will a shortage of funds stop you from pursuing your aspirations? Certainly not, given that you always have the Rusk hard money loan alternative.

A hard money home loan in Rusk provides what is probably most sought after by real estate investors — a quick closing time of as few as two weeks. Plus, the LTV value can range up to 70% of the home value, as estimated by a certified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank lending options. But the lengths of these loans tend to be comparatively shorter, making the interest rate much less important. The cost of such short-term loans ought to be considered much like every other cost that you will encounter during the project. And once you have sold the property or home, recouping this expense is the exact same as recuperating the expense for all the bathroom upgrades you performed.

What's more, it is simple to obtain a hard money mortgage, even if your credit situation is not that superb. Rusk hard money lenders do not approve a loan exclusively according to the person's credit score — instead they additionally assess the property, where it is located and what it is worth, and the home's ability to pay back the financing by itself. Adding to that, if the individual can demonstrate past experience in comparable real estate projects, can place down money for the down payment, and the price of equivalent houses in the neighborhood works in his favor, he has got a good likelihood of being approved to obtain a hard money real estate loan.

So if you have stumbled on a really great fixer-upper with a huge probability of returns, you've also found yourself a hard money lender in Rusk who is ready to provide funding for your fix and flip ventures. Fill out the contact form or call us and let's talk about your property or properties.