Imagine you've run across this really great bargain on a fix and flip property you found in an ideal location, and you happen to be either a skilled real estate investor or a newbie who is looking to try his hand at flipping. Everyone knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, can readily make a typical profit margin of $40,000 to $50,000 when they flip properties. And indeed, they are aided in a big way as a result of their professional experience, auction abilities and knowledge of hard money loans. That said, you've recently been developing your rehab and renovation knowledge, have got a licensed contractor arranged and are certain that you can do a stellar job for this house.

But money is a separate issue altogether. When you approach a customary lending institution, like a bank for a loan, it's very likely going to take, at a minimum, 4-8 weeks for your approval to come through and your funds to be furnished. Since the majority of home owners wish to have a fast closing, it may be best to start looking for other funding options.

With banks establishing more challenging loan criteria in the past several years, it's become more difficult for a self-employed person to obtain a mortgage loan, particularly if his credit circumstances are not flawless. So does that mean you have no option, but to give up your dream of getting into the fix and flip business? Certainly not, because you can always go the Shenandoah hard money loan route to pay for your rehab project.

A hard money home loan in Shenandoah provides you with what's possibly most desired by real estate investors — a very fast closing in as little as a few weeks. Besides that, hard money lenders are able to do lending up to 70% LTV of the property value, as identified by a professional third-party appraiser. A number of people believe hard money real estate loans to be more costly than standard financing, because the lending rates for such loans typically start at 10%. But the time frames of these loans tend to be much shorter, making the rate far less significant. The price of such short-term loans ought to be looked at much like every other financial outlay that you would need to meet pertaining to the project. Right after you fix up and sell off the home, recouping this expense is the same as recovering the cost of the home appliances you put in the property.

Aside from that, hard money mortgages are not hard to qualify for, regardless if you posses a bad credit score. Rather than focusing only on the borrower's credit score or net income, Shenandoah hard money lenders, who may be a privately owned company or an individual person, authorize a loan after evaluating the property value, its salability, where it is located, and the odds of recovering their money in the event of foreclosure. The amount that an individual can put down beforehand towards the house, his past real estate experience, and price range of equivalent properties in the same area are other details that go into establishing an applicant's eligibility for a hard money real estate loan.

If you happen to have stumbled upon a really great home to flip with a huge potential for returns, you've also found yourself a hard money lender in Shenandoah that is prepared to provide financing for your fix and flip project. Fill out the form or call us to discuss the property you have in mind.