Suppose you've run across this really great bargain for a fix and flip property in an ideal location, and you're either a seasoned real estate investor or a first-timer who hopes to try his hand at flipping. Professional property flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to bring in a profit of $40-$50k on most projects. And sure, they are aided in a major way by their professional know-how, auction expertise and knowledge of hard money loans. Still, your rehab and renovation skills aren't that bad either — aside from that, you've already found a suitable building contractor to start this job.

But where precisely do real estate investors obtain funds? When you apply for a normal loan from the bank, you will end up waiting roughly 30-60 days up until the time the financing is approved and your money is accessible. Due to the fact all the sellers want a fast closing, that doesn't appear to be a great idea to you in the slightest.

On top of this, banks have been tightening their lending standards in recent years, rendering it more difficult for people to receive a traditional loan if their credit rating is not perfect or he doesn't have a consistent salaried job. So will a lack of funds keep you from pursuing your aspirations? By no means, especially when Shelby hard money loans will assist you to realize great things in real estate.

A hard money home loan in Shelby offers what is viewed as imperative to most real estate sales — a fast closing of just a 2-3 weeks and at times less. In addition, the LTV value can go up to 70% of the place's valuation, as determined by a credentialed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as more pricey than bank lending options. But in reality, the rate of interest isn't as relevant for these loans, given that they are not long-term loans. The price tag on such short-term loans should be looked at much like any other expense that you would encounter during the project. And when you've finally flipped the property or home, recouping this expense is the exact same as recovering the expense for the kitchen and bath upgrades you did.

Also, it isn't difficult to be eligible for a hard money mortgage, even in the event your credit rating is not that great. Shelby hard money lenders do not approve a loan solely based on the applicant's credit score — instead they will evaluate the property, its location and value, and the property's capacity to pay back the financing on its own. Other criteria that affect an applicant's approval for a hard money real estate loan can include what amount of money he is able to put towards a down payment, his former experience being a real estate investor, and price range of comparable, recently sold homes nearby.

Searching for a hard money lender in Shelby to fund your renovation project is not very challenging, provided that the opportunity in front of you is promising and boasts a good potential for returns. Fill out the contact form on this page or get in touch with us via phone and let's discuss the property you have in mind.