Imagine you've come across this excellent deal on a fix and flip property in a terrific neighborhood, and you happen to be either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Professional home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are able to generate a profit of forty to fifty grand on a consistent basis. Without question, their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have had an important role in their successes. That said, you have recently been developing your rehab and renovation skills, have a very good contractor ready to go and are certain that you will be able to do a stellar job for this property.

But capital is usually a separate problem entirely. For those who approach a common lending institution, much like a bank for financing, it's likely going to take, as a minimum, 4-8 weeks for the acceptance to be completed and your money to be accessible. Because most home owners would prefer a fast closing, you might have to start looking for additional financing options.

To add to it, banks have been tightening their lending criteria in recent years, which makes it hard for people to get a regular home loan if their credit situation is not flawless or he doesn't have a regular salaried profession. So does this mean you are without an option, but to abandon your ambition of getting into the fix and flip business? Most certainly not, because you always have the St Clair Shores hard money loan option.

If you apply for a hard money home loan in St Clair Shores, you will get what is possibly most essential to real estate transactions across the country — a very fast closing of roughly two weeks. Besides that, hard money lenders can approve lending up to 70% LTV of the home value, as estimated by a credentialed third-party evaluator. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be costlier than bank loans. But in reality, the interest rate is not as useful a measure for these loans, simply because they aren't long-term financing. Short-term loans of a couple of months to a handful of years are best approached in terms of cost of capital, similar to any other expenditure in connection with a project. Right after you rehab and unload the home, recouping this expense is the same as recouping the expense for stainless steel appliances you placed into the home.

Furthermore, even individuals with poor credit can still be eligible for a hard money mortgage. The borrower's credit score will not be the primary determining factor for St Clair Shores hard money lenders — additionally, they analyze the property, what is it valued at, where it is located, and its ability to earn back their financial commitment if things should not go as intended. Additional variables that affect a person's eligibility for a hard money real estate loan include the amount he is able to put into a down payment, his past experience being a real estate investor, and selling price of comparable, fairly recently sold properties in the neighborhood.

So if you have found a wonderful real estate opportunity with a significant potential for returns, you've also found yourself a hard money lender in St Clair Shores who's ready to finance your flipping project. Submit the form or get in touch with us via phone to talk about your property.