You discovered this amazing possibility for renovating and flipping this nice outdated condo in a very good area and it seems a lot like the deal you have been eagerly waiting on for quite a while. A majority of people know that capable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, can make an average profit of $40,000 to $50,000 on their flips. No need to explain that their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have been large factors to their success. Nonetheless, your rehab and remodeling knowledge isn't bad either — besides, you've already identified a suitable contractor to tackle this home.

But funding is usually a different problem entirely. When you meet with a regular lending institution, like a bank for funding, it is very likely going to take, as a minimum, 30-60 days for the approval to come through and your funds to be sent out. Given that home owners would rather have a fast closing, you may have to begin looking for some other financing alternatives.

On top of this, banks have been tightening up their lending criteria in recent years, making it tough for a person to get a traditional home loan if their credit situation is not flawless or he is lacking a consistent salaried profession. So must you admit defeat and abandon your ambition to venture off into real estate? By no means, particularly when Staunton hard money loans enable you to achieve great things in the real estate world.

A hard money home loan in Staunton provides what is possibly most desired by real estate investors — a fast closing time period of as few as two weeks. Additionally, financing can be done for up to 70% loan-to-value of the as-is home's valuation, as deemed by a licensed appraiser. A number of people believe hard money real estate loans to be more pricey than ordinary financing, considering interest rates for such loans normally start off at 10%. But when you appreciate that these loans are not long-term loans, the rate tends to be misleading. Short-term loans of a couple of months to a few years are best approached in terms of cost of capital, the same as every other expense related to a project. After you remodel and sell off the property, recuperating this expense is just like recuperating the money you spent for stainless steel appliances you placed into the home.

In addition, even a person with poor credit will be able to be eligible for a hard money mortgage. Instead of focusing solely on the person's credit score or net income, Staunton hard money lenders, who may be a private company or an individual person, say yes to a loan after assessing the property value, how easy it will be to market, its location, and the likelihood of recuperating their capital in case they have to foreclose the loan. On top of that, if the person have proven experience in equivalent real estate projects, can put down cash for the down payment, and the value of comparable properties in the vicinity works to his benefit, he will have a good shot of qualifying to obtain a hard money real estate loan.

So if you have stumbled upon an excellent fixer-upper with a significant probability of returns, you've also found yourself a hard money lender in Staunton that's willing to finance your rehab ventures. Fill out the contact form or call us and let's discuss the property you have in mind.