Suppose that you've come across this really great bargain on a fix and flip property in an ideal neighborhood, and you are either a seasoned real estate investor or a newbie who really wants to try out flipping homes. You've heard that professional home flippers, much like the married couple on HGTV's Flip or Flop, turn a remarkable average profit margin of around $40,000 – $50,000. No need to explain that their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have played an important part in their successes. However, you are assured that your impressive rehab and renovation knowledge can help you do a superb job on this property — furthermore, you've already arranged to have one of the premier general contractors in town to handle this job.

But how do you obtain the needed capital for flipping? A traditional lender, like for example a bank, takes a minimum of 1 to 2 months to approve the financing and release the capital. Since the majority of sellers wish to have a fast closing, you may have to start seeking out additional financing alternatives.

On top of this, banks have been tightening up their lending standards in recent years, making it tough for people to get a regular loan if their credit circumstances are not flawless or he does not possess a consistent salaried profession. So does this leave you with no other option, but to drop your ambition to venture into home renovating? Absolutely not, because you always have the Seneca Falls, New York hard money loan option.

A hard money home loan in Seneca Falls provides what's viewed as crucial to most real estate transactions — a fast closing of only a few weeks and at times less. Further, financing can be made up to 70% loan-to-value of the as-is property value, as established by a qualified appraiser. With the rates starting off at about 10%, hard money real estate loans may look, initially, to be higher priced as compared with traditional bank lending products. But in reality, the interest rate isn't as useful a measure for these loans, since they aren't long-term loans. When it comes to short-term loans of 1 or 2 years or less, you should think about them just like you would other expenditures for the project. When you have sold the property and have made a positive gain, you'll be able to recover this expense from the home — much like recouping the cost of brand-new kitchen appliances that you have put in.

Apart from this, hard money mortgages are not hard to qualify for, regardless if you posses very bad credit. Rather than focusing only on the applicant's credit score or net income, Seneca Falls hard money lenders, who could be a privately owned company or an individual, approve a loan after assessing the property value, how easy it will be to market, where it is located, and the probability of recouping their capital if they have to foreclose the loan. Adding to this, if the person have proven experience in similar real estate projects, can place down money for the down payment, and the price of comparable houses in the area works in his favor, he has got an excellent chance of being eligible to get a hard money real estate loan.

So should you come across a good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in Seneca Falls, willing to loan you the cash you will need. Submit the form on this page or call us to discuss the property or properties you have in mind.