Suppose that you've run into this really great bargain for a fix and flip property you found in a terrific neighborhood, and you're either a seasoned real estate investor or a first-timer who is looking to try out flipping houses. Many people know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, are able to earn a typical profit margin of forty to fifty thousand dollars on their flips. Naturally, you also understand that their great results are due to the fact that they're industry experts, are proficient in hard money loans, they understand the marketplace really well and furthermore, they are good at working a public auction for getting an appropriate deal. That said, you've likewise been cultivating your rehab and remodeling skills, have a very good building contractor arranged and are positive that you can do a great job for this house.

But where do you get the needed capital for home flipping? A standard lending institution, say for example a bank, takes at the very least one to two months to authorize the mortgage and release the monies. Thus if you happen to be looking for a fast closing, it is important you understand that this may cost you a couple of weeks, making you miss out on the opportunity.

With banks bringing in tougher loan guidelines in the past several years, it is tougher for a self-employed person to find a home loan, especially if his credit circumstances are not optimal. So does that leave you with no option, but to give up your dream of venturing into rehabbing? Certainly not, on the grounds that you could always go the Spotswood, New Jersey hard money loan route to fund your flipping project.

A hard money home loan in Spotswood provides what is regarded as essential to many real estate deals — a quick closing of just a 2-3 weeks and sometimes less. Further, loans are made up to 70% loan-to-value of the "as is" property value, as determined by a licensed appraiser. A number of people regard hard money real estate loans to be higher in price than standard financing, since the lending rates of such loans normally start out at 10%. But in reality, the lending rate isn't as useful a measure for these loans, simply because they are not long-term financing. The cost of such short-term loans should be considered on par with any other expenditure that you would have to meet for the project. After you fix up and sell off the property, recouping this expense is no different than recouping the money you spent for stainless steel appliances you placed into the property.

Apart from this, hard money mortgages are easy qualifying, regardless if you have got bad credit. The borrower's credit score is not the sole determining factor for Spotswood hard money lenders — in addition, they evaluate the home, what is it valued at, its location, and its capacity to return their investment if things do not work out as intended. Additional variables that affect an individual's acceptance for a hard money real estate loan include the amount he can put towards a down payment, his past experience being a real estate investor, and price of similar, recently sold properties in the vicinity.

If you happen to have stumbled upon an excellent real estate opportunity with a high prospect of returns, you've also found yourself a hard money lender in Spotswood that is ready to provide financing for your fix and flip ventures. Complete the form on this page or get in touch with us via phone to discuss the project you have in mind.