Suppose you've come across this excellent deal on a fix and flip property located in an ideal neighborhood, and you happen to be either a skilled real estate investor or a newbie who really wants to try his hand at flipping. A majority of people know that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, can readily generate an average profit of $40,000 to $50,000 when they rehab properties. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction talents have played an important role in their success. Nonetheless, your rehab and remodeling skills aren't bad either — aside from that, you've already identified a suitable licensed contractor to take on the home.

But funding is usually a different issue entirely. Should you go after a regular loan via a bank, you will need to wait approximately one to two months up until the time the mortgage is approved and your funds are accessible. Because most sellers would prefer a fast closing, it may be best to begin searching for additional financing alternatives.

With banks establishing tougher loan requirements in the past several years, it has become more difficult for a self-employed individual to obtain a mortgage loan, particularly if his credit situation is not optimal. So will a lack of financing stop you from following your dream? Certainly not, given that you also have the Staunton hard money loan alternative.

A hard money home loan in Staunton provides what's regarded as imperative to many real estate transactions — a very fast closing of just a few weeks and oftentimes even less. Besides that, hard money lenders are capable of doing loans up to 70% LTV of the property's valuation, as established by a certified third-party appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more pricey than bank lending options. But usually, the lending rate isn't as useful a measure for these loans, given that they are not long-term financing. The price tag on such short-term loans should be considered much like every other expense that you might encounter in the course of the project. Right after you fix up and resell the house, recovering this expense is just like recouping the one for home appliances you put in the property.

Besides, hard money mortgages are easy qualifying, even if you have very bad credit. The applicant's credit score isn't the primary deciding factor for Staunton hard money lenders — additionally, they consider the property, its market valuation, where it is located, and its potential to return their financial commitment if things do not go as intended. Adding to this, if the applicant have proven experience in similar real estate ventures, can put down cash towards the down payment, and the price of comparable houses in the neighborhood works to his benefit, he has a good chance of qualifying to obtain a hard money real estate loan.

Locating a hard money lender in Staunton to fund your real estate project is not very hard, provided that the opportunity in front of you is promising and boasts the right potential for returns. Submit the form on this page or call us to discuss your property.