A fabulous bargain on a fix and flip property located in a good neighborhood all of a sudden shows up — sounds too good to be true. Professional house flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to generate a gain of $40-$50k on a consistent basis. And indeed, they are aided in a big way via their professional know-how, auction skills and familiarity with hard money loans. On the other hand, you're assured that your impressive rehab and renovation talents can help you do a great job on the project — what's more, you already have arranged to have one of the most sought after general contractors in the business to work on the job.

But how exactly do real estate investors find money? When you get in touch with a regular lender, like a bank for a loan, it is in all likelihood going to take, as a minimum, thirty to sixty days for your acceptance to be completed and the funds to be sent out. Since most home owners would rather have a fast closing, you might want to start looking for other funding alternatives.

What's more, in case you have a less-than-perfect credit situation or do not receive a routine source of income, it can be tougher for you to be eligible for bank financing, seeing the stricter loan requirements banks have put in place as of late. So do you have to give up and abandon your aspiration to embark into real estate? Certainly not, because you also have the South Plainfield hard money loan option.

A hard money home loan in South Plainfield provides you with what's perhaps most important to real estate investors — a very fast closing time of as little as 2 weeks. Furthermore, hard money lenders are capable of doing funding up to 70% LTV of the home value, as estimated by a qualified third-party evaluator. With the interest rates starting near 10%, hard money real estate loans might seem, at first glance, to be more expensive in comparison with traditional bank lending products. But if you understand these are not long-term mortgage loans, the rate of interest can be misleading. Short-term loans of several months to a handful of years are best looked at in terms of cost of capital, similar to any other financial outlay in connection with a project. When you have resold the property or home and have made a positive gain, you can reclaim this expense from the home — the same as recovering the cost of brand-new appliances for the kitchen that you have put in.

In addition, even individuals with poor credit can still qualify for a hard money mortgage. The person's credit score is not the single determining factor for South Plainfield hard money lenders — they also look at the piece of real estate, how much it is worth, its location, and its ability to earn back their investment if things do not go as planned. Several other variables that affect a customer's acceptance for a hard money real estate loan can include what amount of money he can put towards a down payment, his past experience as a real estate investor, and price range of similar, fairly recently sold residences nearby.

So if you have stumbled upon an excellent real estate opportunity with a huge probability of returns, you have also stumbled upon a hard money lender in South Plainfield that is ready to finance your rehab project. Fill out the contact form on this page or call us and let's discuss your property.