Imagine you've encountered this really great deal for a fix and flip property in a terrific location, and you're either a seasoned real estate investor or a newbie who hopes to try his hand at flipping. A majority of people know that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can generate an average profit of forty to fifty thousand dollars on their flips. No need to explain that their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction talents have been large factors to their results. That said, you have also been cultivating your rehab and renovation skills, have a very good general contractor lined up and are certain that you can do a stellar job on this home.

But capital is a separate issue entirely. For those who get in touch with a common lending institution, such as a bank for financing, it in all likelihood will take, as a minimum, four to eight weeks for the approval to be completed and your money to be dispersed. Given that home owners would prefer a fast closing, you may want to begin seeking out other financing alternatives.

With banks bringing in harder loan guidelines in the last few years, it is harder for a self-employed person to obtain a mortgage loan, particularly if his credit circumstances are not flawless. So does this leave you with no other option, but to drop your ambition to venture into rehabbing? Absolutely not, because you always have the Shelby hard money loan option.

A hard money home loan in Shelby can provide what is considered crucial to many real estate sales — a quick closing of only a few weeks and oftentimes even less. Also, hard money lenders are capable of doing loans up to 70% LTV of the home's valuation, as identified by a certified third-party evaluator. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be higher priced than bank financing. But the term lengths for these loans tend to be much shorter, which makes the interest rate far less significant. Short-term loans of a couple months to a few years are best looked at as cost of capital, very much like every other expense in connection with a project. When you have turned the property and have made a good profit, you can get back this expense from the property — just like recouping the money spent on the brand-new home appliances that you installed.

Also, it isn't difficult to be eligible for a a hard money mortgage, even when your credit score is not that great. Rather than focusing entirely on the borrower's credit score or source of income, Shelby hard money lenders, who may be a private company or an individual, approve a loan after examining the home value, its marketability, where it is located, and the possibility of getting back their money in the event of foreclosure. Several other criteria that impact an individual's acceptance for a hard money real estate loan include how much he is in a position to put into a down payment, his former experience being a real estate investor, and price range of comparable, fairly recently sold residences in the vicinity.

So any time you come across a very good and worthwhile investment opportunity, rest assured you'll have a hard money lender in Shelby, willing to loan you the funds that you need. Fill out the contact form or get in touch with us via phone and let's discuss your project.