Suppose you've encountered this really great deal for a fix and flip property located 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. Most folks know that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, can earn a typical profit margin of $40,000 to $50,000 in their rehab business. It's fair to say their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction skills have had an important part in their success. Nonetheless, your rehab and renovation knowledge isn't bad either — in any case, you have already found a good licensed contractor to tackle this home.

But financing is often a separate question altogether. For those who go after a conventional bank loan, you will wind up waiting somewhere around 1-2 months up until the money is authorized and the funding is accessible. With the home owners looking for a fast closing, that doesn't appear to be a good option to you at all.

With banks introducing harder loan requirements in the recent past, it is now harder for a self-employed individual to get a mortgage loan, particularly if his credit situation is not flawless. So should you stop trying and abandon your desire to venture into fix and flips? Never, on the grounds that you could always use the South Glens Falls hard money loan approach to finance your home flipping project.

A hard money home loan in South Glens Falls gives you what's possibly most desired by real estate investors — a fast closing time period of as few as a few weeks. Additionally, financing can be done for up to 70% loan-to-value of the "as is" property's valuation, as established by a professional appraiser. Some people believe hard money real estate loans to be more costly than regular financing, because the interest rates of such loans usually start at 10%. But usually, the interest rate is not as useful a measure for these loans, given that they are not long-term loans. Short-term loans of a couple months to a few years are best thought of as cost of capital, similar to every other expense related to a project. When you have turned the property or home and have made a good financial gain, you can reclaim this expense from the property or home — similar to recouping the cost of brand-new kitchen appliances that you've installed.

Also, it is simple to be eligible for a a hard money mortgage, even if your credit score is not that great. The applicant's credit score is not the single determining factor for South Glens Falls hard money lenders — in addition, they consider the piece of real estate, how much it is worth, where it is located, and its ability to earn back their financial commitment if things should not work out as planned. Additional criteria that affect a customer's eligibility for a hard money real estate loan include how much he can put towards a down payment, his prior experience being a real estate investor, and selling price of comparable, fairly recently sold residences in the neighborhood.

If you happen to have stumbled on a wonderful real estate opportunity with a significant prospect of returns, you've also discovered a hard money lender in South Glens Falls who is willing to finance your flipping ventures. Complete the contact form or get in touch with us via phone and let's discuss your property.