A fabulous bargain on a fix and flip opportunity in a nice neighborhood all of a sudden shows up — sounds so good that it's difficult to believe. You've probably heard that veteran property flippers, similar to the couple on HGTV's Flip or Flop, have a remarkable average return near $40,000 – $50,000. And sure, they are aided in a major way as a result of their professional experience, auction skills and knowledge of hard money loans. Nonetheless, your rehab and renovation skills aren't that bad either — in any case, you have already located a suitable building contractor to tackle this project.

But how do you get the needed financing for home flipping? If you approach a standard lender, like a bank for funding, it's in all likelihood going to take no less than thirty to sixty days for your approval to come through and your money to be furnished. Since most home owners give preference to a fast closing, it may be best to start seeking out some other financing options.

With banks introducing tougher loan criteria in recent years, it has become more difficult for a self-employed person to find a mortgage loan, particularly if his credit rating is not perfect. So should you admit defeat and abandon your desire to venture off into the real estate market? Certainly not, considering that you can always use the Savoy hard money loan approach to finance your home flipping project.

A hard money home loan in Savoy gives you what's probably most essential to real estate investors — a quick closing time of as few as fourteen days. Also, hard money lenders can approve lending up to 70% LTV of the property or home value, as calculated by a professional third-party appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank lending options. But in reality, the rate of interest isn't as relevant for these loans, since they will never be long-term financing. As it pertains to short-term loans of 1 or 2 years or less, you should think of them much like you would other expenses for the project. Right after you remodel and resell the home, recouping this expense is the same as recuperating the expense for home appliances you placed into the house.

In addition, even an individual with low credit will be able to qualify for a hard money mortgage. Savoy hard money lenders don't take on a loan exclusively according to the applicant's credit score — instead they will look at the home, its valuation and location, and the property's ability to pay back the financing independent of the applicant. Adding to this, if the borrower can demonstrate prior experience in similar real estate endeavors, can place down cash for a down payment, and the price of similar properties in the vicinity works to his benefit, he stands a really good shot of qualifying to get a hard money real estate loan.

Searching for a hard money lender in Savoy to finance your renovation project is not very challenging, as long as the opportunity in front of you is promising and has the right potential for returns. Fill out the contact form on this page or give us a call to discuss your project.