Suppose you've come across this really great deal on a fix and flip property you found in a terrific neighborhood, and you are either a seasoned real estate investor or a newbie who hopes to try out flipping houses. Most folks know that capable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can turn an average profit of $40,000 to $50,000 on their flips. And indeed, they are aided in a big way via their professional know-how, auction expertise and understanding of hard money loans. That said, you've likewise been cultivating your rehab and remodeling knowledge, have a contractor ready for the project and are certain that you can do a great job on this home.

But capital is a different problem entirely. When you apply for a normal loan from the bank, you will have to wait around somewhere around 1-2 months until the financing is authorized and your funding is ready. So if you will be hoping for a fast closing, you have to realize that this may set you back by a couple weeks, making you miss out on the sale.

Moreover, in case you have a less-than-perfect credit score or don't have a regular income, it is usually more challenging for you to obtain bank financing, with the more stringent loan guidelines banks have introduced as of late. So will a lack of funding stop you from sticking with your aspirations? Most certainly not, given that you also have the Swanton hard money loan option.

A hard money home loan in Swanton offers what is regarded as essential to most real estate sales — a quick closing of only a few weeks and more often than not even less. Furthermore, hard money lenders will often consent to loans up to 70% LTV of the property's valuation, as identified by a licensed third-party appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as more costly than bank lending products. But when you consider these are not long-term home loans, the interest rate tends to be misleading. Short-term loans of a couple of months to a handful of years are best thought of in terms of cost of capital, much like all other expenditures related to a project. After you remodel and unload the house, recouping this expense is the same as recuperating the expense for stainless steel appliances you put in the home.

Apart from this, hard money mortgages are not difficult to qualify for, even when you have less-than-perfect credit. Rather than focusing strictly on the person's credit score or income, Swanton hard money lenders, who may be a private company or an individual person, approve a loan as a result of analyzing the home value, its salability, its location, and the probability of recouping their capital in case they have to foreclose the loan. On top of this, if the person have proven experience in comparable real estate projects, can put down money for a down payment, and the value of similar homes in the neighborhood works to his benefit, he will have a very good shot of qualifying to get a hard money real estate loan.

So should you come across a very good and profitable investment opportunity, feel comfortable knowing you will have a hard money lender in Swanton, prepared to loan you the capital you will need. Fill out the form on this page or call us to talk about your property.