Suppose that you've stumbled upon this excellent deal on a fix and flip property in a terrific location, and you are either a seasoned real estate investor or a newbie who wants to try out flipping homes. Everybody knows that knowledgeable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can generate an average profit of $40,000 to $50,000 when they rehab properties. Of course, you also know that their great results are due to the simple fact that they're industry experts, are proficient in hard money loans, they know market trends really well and in addition, they know how to work an auction for getting a reasonable deal. Still, your rehab and renovation knowledge isn't that bad either — in any case, you have already located a suitable licensed contractor to handle the home.

But how exactly can real estate investors obtain funding? A typical lender, like for example a bank, takes at least one to two months to consent to the financing and hand over the monies. Given that home owners give preference to a fast closing, you might need to start seeking out some other funding alternatives.

With banks adding tougher loan requirements in the past few years, it has become much harder for a self-employed person to find a mortgage loan, especially when his credit circumstances are not optimal. So must you give up and forego your desire to venture off into real estate? Never, on the grounds that you could always use the Shively hard money loan approach to finance your home renovating project.

A hard money home loan in Shively provides what is deemed crucial to most real estate transactions — a very fast closing of only a 2-3 weeks and oftentimes even less. What's more, the LTV value can go up to 70% of the property value, as estimated by a certified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as more expensive than bank lending options. But the time frames of these loans are much shorter, which makes the interest rate much less significant. As it pertains to short-term loans of several years or less, you should think about them the same as you might for every other expenditure for the project. And as soon as you have flipped the house, recovering this expense is the exact same as recouping the expense for the bathroom or other improvements you did.

Apart from this, hard money mortgages are easy qualifying, regardless if you have got bad credit. Shively hard money lenders don't authorize a loan solely according to the customer's credit score — rather they also evaluate the property, where it is located and what it is worth, and the property's capacity to pay back the loan on its own. Additional variables that have an impact on an applicant's eligibility for a hard money real estate loan include what amount of money he can put into a down payment, his former experience as a real estate investor, and selling price of comparable, recently sold properties in the vicinity.

Locating a hard money lender in Shively to finance your flipping business is not very hard, as long as the opportunity in front of you is promising and has the right prospect for returns. Complete the form or get in touch with us via phone and let's discuss the property you have in mind.