Suppose you've come across this really great bargain on a fix and flip property located in a great neighborhood, and you are either a seasoned real estate investor or a first-timer who is looking to try his hand at flipping. Expert house flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to earn a gain of $40-$50k for most homes. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction skills have played a big part in their results. However, you're certain that your first class rehab and remodeling knowledge will help you do a superb job for this house — what's more, you already have lined up one of the best general contractors in the business to take care of the project.

But how exactly do real estate investors get money? A standard lending institution, say for example a bank, takes at least 1-2 months to consent to the financing and deliver the cash. So if you happen to be anticipating a fast closing, you must recognize that this could set you back by a couple weeks, making you lose out on the sale.

As well as this, should you have a less-than-perfect credit situation or do not receive a routine source of income, it usually is tougher for you to qualify for bank financing, with the tougher loan requirements banks have introduced lately. So should you admit defeat and forego your desire to embark into the real estate market? Absolutely not, seeing as you also have the South Portland hard money loan alternative.

A hard money home loan in South Portland offers you what is deemed essential to many real estate transactions — a fast closing of only a few weeks and sometimes less. Plus, the LTV value can reach up to 70% of the place's valuation, as evaluated by a competent appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be higher in price than bank lending options. But in reality, the rate of interest is not as relevant for these loans, given that they are not long-term loans. The price of such short-term loans should be considered on par with every other expenditure that you will have to meet pertaining to the project. Right after you remodel and resell the property, recuperating this expense is no different than recouping the expense for new kitchen appliances you placed into the house.

What's more, it's simple to obtain a hard money mortgage, even if your credit score is not that great. The applicant's credit score is not the single deciding factor for South Portland hard money lenders — in addition, they consider the property, what is it valued at, where it is located, and its capacity to return their financial commitment if everything does not work out as planned. Several other criteria that influence a customer's approval for a hard money real estate loan can include how much money he is able to put into a down payment, his previous experience being a real estate investor, and price range of comparative, fairly recently sold residences in the area.

If you happen to have stumbled upon a wonderful fixer-upper with a huge potential for returns, you've also found yourself a hard money lender in South Portland who's willing to provide financing for your rehab project. Fill out the form on this page or call us and let's discuss your project.