A remarkable deal on a fix and flip opportunity in an excellent neighborhood shows up out of the blue — sounds too good to be true. Expert home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to generate a profit of $40-$50k on the majority of projects. And sure, they are aided in a big way as a result of their professional knowledge, auction expertise and understanding of hard money loans. However, you are convinced that your first class rehab and remodeling talents will enable you to do a superb job for this house — furthermore, you have already lined up one of the finest building contractors in town to handle the project.

But funding is a separate question altogether. In the event you go after a normal loan from the bank, you will wind up waiting around roughly 1 to 2 months until eventually the loan is approved and your funds are ready. Because most sellers wish to have a fast closing, it may be best to start searching for additional funding alternatives.

On top of this, banks have been tightening up their lending standards in recent years, which makes it difficult for someone to get an ordinary home loan if their credit rating is not perfect or he does not possess a regular salaried occupation. So must you admit defeat and forego your ambition to venture into real estate? Certainly not, given that you always have the Stow hard money loan alternative.

A hard money home loan in Stow offers you what is deemed crucial to most real estate sales — a fast closing of only a 2-3 weeks and more often than not even less. Further, financing can be made up to 70% loan-to-value of the as-is house's valuation, as established by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank lending products. But usually, the interest rate is not as useful a measure for these loans, simply because they will never be long-term loans. Short-term loans of several months to a few years are best understood as cost of capital, the same as every other expenditure related to a project. And as soon as you have sold the property, recuperating this expense is comparable to recuperating the expense for the bathroom or other improvements you performed.

Additionally, it is simple to be eligible for a hard money mortgage, even when your credit score is not that great. Stow hard money lenders do not authorize a loan solely based on the person's credit score — rather they will examine the property or home, where it is located and what it is worth, and the property's capacity to pay back the loan without the assistance of the person. Adding to that, if the borrower can demonstrate past experience in similar real estate endeavors, can put down money for the down payment, and the value of similar properties in the vicinity works in his favor, he stands a good shot of being eligible for a hard money real estate loan.

So any time you run into a good and profitable flipping opportunity, rest assured you'll have a hard money lender in Stow, equipped to lend you the capital that you need. Fill out the form or call us and let's discuss the property or properties you have in mind.