Suppose you've stumbled upon this truly good bargain on a fix and flip property located in an ideal location, and you're either a seasoned real estate investor or a newbie who wants to try his hand at flipping. You've probably heard that professional home flippers, such as the couple on HGTV's Flip or Flop, have a remarkable average profit close to forty to fifty thousand dollars. And without a doubt, they are helped in a big way as a result of their professional knowledge, auction abilities and knowledge of hard money loans. Still, your rehab and renovation skills aren't bad either — aside from that, you've already identified a good licensed contractor to take on this project.

But financing is usually a separate problem altogether. A traditional lender, like for example a bank, takes at least one to two months to approve the mortgage and release the capital. Considering that all the home owners are looking for a fast closing, that does not appear to be a great idea to you at all.

To add to it, banks have been tightening up their lending requirements in recent times, which makes it difficult for someone to obtain a conventional home loan if their credit rating is not flawless or he does not possess a consistent salaried occupation. So should you admit defeat and forego your dream to venture off into the real estate market? Under no circumstances, especially when Sterling Heights hard money loans can help you accomplish many amazing things in the real estate market.

A hard money home loan in Sterling Heights provides what is perhaps most desired by real estate investors — a fast closing in as little as fourteen days. Besides that, hard money lenders will often consent to lending up to 70% LTV of the property's valuation, as determined by a credentialed third-party appraiser. With rates starting off around 10%, hard money real estate loans may appear, at first glance, to be higher priced when compared with traditional bank lending products. But once you appreciate that these are not long-term home loans, the rate may be misleading. When it comes to short-term loans of a few years or less, you should think of them much like you would other expenses for the project. Right after you fix up and sell off the property, recuperating this expense is no different than recuperating the expense for new kitchen appliances you installed in the house.

Moreover, even someone with low credit will be able to qualify for a hard money mortgage. As an alternative for focusing solely on the person's credit score or income, Sterling Heights hard money lenders, who may be a privately owned company or an individual person, authorize a loan as a result of assessing the property value, its marketability, its location, and the likelihood of getting back their capital if they have to foreclose the loan. On top of that, if the borrower have proven experience in equivalent real estate endeavors, can put down cash towards a down payment, and the price of similar properties in the vicinity works to his benefit, he stands a very good chance of qualifying for a hard money real estate loan.

So any time you run into an outstanding and lucrative investment opportunity, be assured you will have a hard money lender in Sterling Heights, equipped to lend you the cash you need. Enter your info into the form or give us a call and let's discuss your property.