Suppose that you've encountered this truly good bargain for a fix and flip property you found in a great location, and you're either a skilled real estate investor or a newbie who wants to try his hand at flipping. Many people know that skilled professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can turn a typical profit margin of $40,000 to $50,000 in their rehab business. And indeed, they are aided in a major way via their professional know-how, auction skills and understanding of hard money loans. Still, your rehab and remodeling skills aren't that bad either — in any case, you have already found a suitable licensed contractor to tackle this home.

But funding is a different issue altogether. Should you opt for a regular loan via a bank, you will have to wait approximately 1-2 months until the loan is authorized and the money is ready. So if you happen to be expecting a fast closing, it's important to understand that this may cost you a couple of weeks, making you miss out on the opportunity.

On top of this, banks have been tightening their lending requirements in recent years, making it challenging for a person to get a traditional loan if their credit situation is not flawless or he is lacking a regular salaried profession. So will inadequate funding stop you from pursuing your ambitions? Never, on the grounds that you could always use the Seagraves hard money loan approach to finance your flipping project.

If you decide to get a hard money home loan in Seagraves, you will get what is probably most vital to real estate transactions throughout the country — a fast closing of about two weeks. Besides that, hard money lenders can do loans up to 70% LTV of the home value, as identified by a certified third-party appraiser. Some people believe hard money real estate loans to be more costly than ordinary financing, considering lending rates of such loans ordinarily start off at 10%. But when you understand these are not long-term loans, the rate tends to be misleading. When it comes to short-term loans of one or two years or less, you should think about them just like you would other expenses for the project. And once you've sold the home, recovering this expense is identical to recouping the expense for all the bathroom improvements you did.

Furthermore, even an individual with weak credit will be able to qualify for a hard money mortgage. Seagraves hard money lenders don't take on a loan exclusively judging by the customer's credit score — instead they also analyze the property or home, where it is located and what it is worth, and the home's capability to pay back the loan by itself. Additional factors that influence a borrower's acceptance for a hard money real estate loan can include how much he is able to put towards a down payment, his former experience as a real estate investor, and price range of comparative, recently sold homes in the vicinity.

Locating a hard money lender in Seagraves to fund your renovation project is not hard, provided that the opportunity that lies before you is promising and offers a good prospect for returns. Enter your info into the contact form or give us a call to discuss the property or properties you have in mind.