An incredible deal on a fix and flip opportunity in a good neighborhood suddenly turns up — seems too good to be true. You've probably heard that veteran property flippers, like the husband and wife on HGTV's Flip or Flop, have a remarkable average return of around forty to fifty thousand dollars. Naturally, you also know that their success can be attributed to the fact that they're industry experts, are proficient in hard money loans, they understand market trends quite well and in addition, they are good at working a public auction for getting an appropriate price. That said, you have likewise been brushing up your rehab and renovation skills, have a very good licensed contractor ready to go and are positive that you will be able to do a bang up job on this home.

But where do you obtain the needed capital for home flipping? A conventional lender, for instance a bank, takes at the very least 1-2 months to approve the financing and hand over the cash. Since the majority of home owners would rather have a fast closing, it may be best to begin seeking out some other financing options.

To add to it, banks have been tightening their lending standards in recent years, which makes it difficult for someone to receive a traditional loan if their credit circumstances are not flawless or he does not have a consistent salaried profession. So do you have to admit defeat and forego your aspiration to get into the real estate market? By no means, especially when South Russell hard money loans enable you to accomplish great things in the real estate world.

A hard money home loan in South Russell provides what's considered crucial to many real estate sales — a quick closing of only a few weeks and sometimes even less. What's more, the LTV value can reach up to 70% of the property's valuation, as estimated by a credentialed appraiser. With lending rates starting near 10%, hard money real estate loans might appear, initially, to be more costly compared to conventional bank lending products. But the term lengths for these loans are fairly short, making the rate much less important. Short-term loans of several months to a few years are best thought of in terms of cost of capital, the same as all other expenses involved with a project. And as soon as you've finally flipped the property, recuperating this expense is comparable to recouping the expense for all the bathroom updates you performed.

Moreover, even a person with bad credit can easily be eligible for a hard money mortgage. As an alternative for focusing entirely on the person's credit score or net income, South Russell hard money lenders, who may be a privately owned company or an individual, approve a loan as a result of assessing the property value, its salability, where it is located, and the possibility of recouping their capital in case of foreclosure. The amount that a borrower can put down in advance for the house, how much experience he has in real estate investing, and selling price of comparative properties in the same neighborhood are additional details that go into determining a borrower's eligibility for a hard money real estate loan.

Finding a hard money lender in South Russell to cover expenses for your flipping business is not very challenging, so long as the opportunity that lies before you is promising and possesses the right prospect for returns. Fill out the form on this page or call us to discuss the project you have in mind.