A fantastic deal on a fix and flip opportunity in a very good subdivision suddenly turns up — sounds too good to be true. You may have heard that competent house flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit close to $40,000 – $50,000. And yes, they are aided in a big way by their professional experience, auction expertise and familiarity with hard money loans. Nevertheless, you are certain that your impressive rehab and remodeling talents will help you do an outstanding job on this house — furthermore, you've already lined up one of the most recommended building contractors in the business to take on the job.

But money is a different problem altogether. A standard lending institution, like for example a bank, takes at a minimum 1-2 months to approve the loan and release the capital. Because most sellers prefer a fast closing, it may be best to begin looking for some other funding alternatives.

What's more, should you have a less-than-perfect credit rating or do not have a regular income source, it is usually more challenging to obtain a bank loan, with the more stringent loan guidelines banks have introduced lately. So will a lack of funding prevent you from pursuing your dream? Certainly not, because you also have the Silver Lake hard money loan option.

A hard money home loan in Silver Lake offers you what's considered vital to many real estate deals — a quick closing of just a couple of weeks and sometimes even less. Besides that, hard money lenders can approve funding up to 70% LTV of the property value, as established by a licensed third-party evaluation. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more costly than bank lending products. But the time frames of these loans tend to be comparatively short, making the interest rate less important. Short-term loans of a couple of months to a handful of years are best understood in terms of cost of capital, very much like all other expenditures associated with a project. After you remodel and sell off the home, recouping this expense is the same as recouping the expense for stainless steel appliances you installed in the house.

Additionally, it's easy to qualify for a hard money mortgage, even in the event your credit situation is not that impressive. Silver Lake hard money lenders do not approve a loan exclusively on the basis of the person's credit score — instead they additionally examine the property, its location and value, and the property's capability to pay back the loan without the assistance of the borrower. The total amount that a person can put down in advance for the house, how much experience he has in real estate investing, and price range of comparable properties in the same neighborhood are additional details that go into determining a person's qualification for a hard money real estate loan.

So any time you run into a very good and worthwhile flipping opportunity, relax knowing you will have a hard money lender in Silver Lake, in a position to lend you the cash you may need. Submit the contact form on this page or call us and let's discuss the property or properties you have in mind.