Suppose that you've run into this really great bargain on a fix and flip property located in a terrific neighborhood, and you are either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. Expert home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a gain of $40-$50k on the majority of projects. And without a doubt, they are aided in a big way due to their professional knowledge, auction abilities and knowledge of hard money loans. Still, your rehab and remodeling skills aren't bad either — in any case, you have already located the right building contractor to start this home.

But money is a separate problem entirely. A traditional lending institution, like for example a bank, takes at a minimum 1 to 2 months to authorize the mortgage and hand over the capital. Because most sellers favor a fast closing, you might need to start searching for some other funding alternatives.

With banks introducing more challenging loan criteria in the recent past, it has become tougher for a self-employed individual to find a mortgage loan, especially when his credit score is not optimal. So do you have to stop trying and forego your aspiration to get into real estate? Never, due to the fact you can always use the Springdale hard money loan approach to pay for your home renovating project.

If you apply for a hard money home loan in Springdale, you have access to what's probably most vital to real estate negotiations throughout the country — a quick closing of approximately two weeks. And additionally, loans can be made up to 70% loan-to-value of the "as is" property's valuation, as deemed by a licensed appraiser. Some people regard hard money real estate loans to be higher in price than customary financing, because the lending rates for these loans normally start at 10%. But the term lengths for these loans tend to be relatively shorter, which makes the rate much less significant. As it pertains to short-term loans of a few years or even less, you should look at them the same as you might for any other expenditure for your project. After you rehab and sell the house, recuperating this expense is just like recouping the money you spent for new kitchen appliances you placed into the house.

Aside from that, hard money mortgages are not hard to qualify for, whether or not you have very bad credit. The customer's credit score is not the primary deciding factor for Springdale hard money lenders — they also evaluate the home, how much it is worth, its location, and its capacity to bring back their investment if everything does not go as planned. Additional variables that impact an applicant's acceptance for a hard money real estate loan include what amount of money he is in a position to put into a down payment, his past experience as a real estate investor, and price of comparable, recently sold homes in the neighborhood.

If you happen to have stumbled upon a really great home to flip with a significant prospect of returns, you've also found yourself a hard money lender in Springdale that is ready to provide financing for your rehab ventures. Submit the contact form on this page or call us and let's discuss the project you have in mind.