Imagine you've encountered this truly good bargain on a fix and flip property you found in a terrific location, and you are either a skilled real estate investor or a newbie who wants to try out flipping houses. You've probably heard that competent home flippers, similar to the husband and wife on HGTV's Flip or Flop, have a remarkable average return of around forty to fifty thousand dollars. And indeed, they are aided in a big way via their professional knowledge, auction skills and familiarity with hard money loans. On the other hand, you're certain that your superb rehab and remodeling knowledge can help you do an outstanding job on this home — in addition, you already have arranged to have one of the premier general contractors in the area to handle the project.

But financing is usually a different issue altogether. A conventional lender, like for example a bank, takes no less than one to two months to approve the loan and deliver the money. Given that sellers would prefer a fast closing, you may have to start seeking out other funding options.

With banks establishing more challenging loan standards in the past several years, it has become tougher for a self-employed person to find a mortgage loan, especially when his credit score is not perfect. So will a lack of financing keep you from sticking with your aspirations? Certainly not, on the grounds that you can always use the Stone Mountain hard money loan approach to pay for your home flipping project.

Should you opt for a hard money home loan in Stone Mountain, you'll get what's possibly most essential to real estate negotiations throughout the country — a very fast closing of around fourteen days. Besides that, hard money lenders are able to do loans up to 70% LTV of the property or home value, as established by a credentialed third-party evaluator. With interest rates starting at about 10%, hard money real estate loans may appear, at first glance, to be higher in price as compared with traditional bank loans. But when you understand these are not long-term mortgage loans, the rate of interest tends to be misleading. The price of such short-term loans ought to be considered much like any other expenditure that you would have to meet for the project. Right after you renovate and sell off the home, recouping this expense is no different than recouping the money you spent for stainless steel appliances you put in the house.

Additionally, it is easy to qualify for a hard money mortgage, even if your credit rating is not that great. Instead of focusing entirely on the applicant's credit score or wages, Stone Mountain hard money lenders, who could be a privately owned company or an individual, approve a loan as a result of examining the property value, ease of marketability, where it is located, and the possibility of recouping their capital in the event of foreclosure. How much money a person can put upfront towards the house, how much experience he has in real estate investments, and selling price of comparative properties in the neighborhood are additional factors that go into analyzing a borrower's suitability for a hard money real estate loan.

So if you have stumbled on a wonderful real estate opportunity with a huge potential for returns, you have also discovered a hard money lender in Stone Mountain that's willing to provide funding for your flipping ventures. Fill out the contact form or get in touch with us via phone and let's discuss the project you have in mind.