A remarkable deal on a fix and flip opportunity located in a nice subdivision shows up out of the blue — sounds so good that it is difficult to believe. Professional residential home flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a gain of $40-$50k on average. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have had a big part in their success. Still, your rehab and remodeling skills aren't bad either — besides, you have already found the right licensed contractor to tackle this home.

But financing is often a separate issue altogether. If you opt for a traditional loan via a bank, you will wind up waiting somewhere around 1 to 2 months up until the money is authorized and the money is ready. Given that home owners wish to have a fast closing, you might have to begin seeking out some other funding options.

On top of this, banks have been tightening up their lending requirements in recent times, making it hard for a person to receive a conventional home loan if their credit situation is not perfect or he is lacking a consistent salaried occupation. So will a shortage of financing prevent you from sticking with your aspirations? Never, on the grounds that you can always go the Shadyside hard money loan route to pay for your rehab project.

A hard money home loan in Shadyside provides you with what is probably most sought after by real estate investors — a quick closing in as few as 14 days. And additionally, financing can be made up to 70% loan-to-value of the as-is property value, as determined by a qualified appraiser. With the lending rates starting around 10%, hard money real estate loans might seem, initially, to be more pricey in comparison with traditional bank lending products. But if you understand these are not long-term mortgage loans, the interest rate tends to be misleading. Short-term loans of a couple of months to a few years are best looked at as cost of capital, very much like every other expenditure associated with a project. After you fix up and resell the home, recouping this expense is no different than recuperating the one for home appliances you installed in the house.

In addition, even someone with bad credit will be able to be eligible for a hard money mortgage. The person's credit score is not the sole deciding factor for Shadyside hard money lenders — they also consider the piece of real estate, how much it is worth, where it is located, and its capacity to return their financial commitment if everything does not go as intended. Adding to that, if the borrower can demonstrate past experience in similar real estate endeavors, can place down money towards the down payment, and the price of similar homes in the area works in his favor, he stands a good shot of being approved to get a hard money real estate loan.

Finding a hard money lender in Shadyside to fund your renovation project is not very hard, as long as the opportunity before you is promising and offers a good prospect for returns. Enter your info into the contact form on this page or give us a call and let's talk about your project.