An outstanding deal on a fix and flip property located in a nice area of the city suddenly turns up — sounds so good that it's difficult to believe. Everyone knows that capable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can readily make a typical profit of $40,000 to $50,000 in their rehab business. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have been large factors to their results. Having said that, you have recently been developing your rehab and remodeling knowledge, have a contractor ready for the project and are positive that you're capable of doing a stellar job on this property.

But money can be a separate issue altogether. In the event you go after an ordinary bank loan, you will need to wait roughly one to two months up until the mortgage loan is authorized and the money is available. Since the majority of sellers wish to have a fast closing, you might want to start searching for some other financing alternatives.

With banks adding more challenging loan criteria in the past few years, it has become much harder for a self-employed person to find a mortgage loan, particularly if his credit rating is not perfect. So does this leave you with no other option, but to give up your aspiration of getting into home renovating? Most certainly not, because you also have the St Louis hard money loan option.

A hard money home loan in St Louis provides you with what is possibly most sought after by real estate investors — a quick closing in as few as a few weeks. And additionally, loan amounts can be done for up to 70% loan-to-value of the "as is" value, as deemed by a professional appraiser. Some people consider hard money real estate loans to be higher priced than regular financing, considering interest rates of such loans usually start at 10%. But usually, the interest rate isn't as relevant for these loans, given that they are not long-term loans. When it comes to short-term loans of a handful of years or less, you should think of them identical to any kind of other expenditure for your project. And when you've turned the house, recouping this expense is the exact same as recovering the expense for the bathroom or other updates you did.

Additionally, it's easy to be eligible for a a hard money mortgage, even in the event your credit situation is not that impressive. St Louis hard money lenders don't authorize a loan strictly according to the customer's credit score — instead they will analyze the home, its value and location, and the home's capacity to pay back the loan independent of the applicant. How much of their own money an applicant can put upfront towards the house, his real estate experience, and selling price of equivalent properties in the same neighborhood are additional factors that go into determining an applicant's qualification for a hard money real estate loan.

So if you have found a wonderful real estate opportunity with a significant prospect of returns, you've also discovered a hard money lender in St Louis who is prepared to provide funding for your fix and flip venture. Fill out the contact form on this page or call us to discuss your project.