Imagine you've come across this truly good bargain on a fix and flip property located in an ideal neighborhood, and you're either an experienced real estate investor or a newbie who is looking to try out flipping homes. Expert home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a gain of forty to fifty grand on a consistent basis. It's fair to say their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have played a big role in their results. Having said that, you have also been brushing up your rehab and remodeling skills, have a very good contractor ready to go and are confident that you're capable of doing an impressive job on this home.

But how do you obtain the needed capital for home flipping? A traditional lending institution, say for example a bank, takes at a minimum one to two months to consent to the mortgage and release the money. Considering that all the home owners are wanting to find a fast closing, that does not appear to be a wise idea to you whatsoever.

With banks establishing harder loan requirements in the past several years, it has become more challenging for a self-employed individual to find a home loan, particularly if his credit circumstances are not perfect. So does that mean you have no option, but to abandon your dream of getting into flipping? Not at all, especially while Troy hard money loans enable you to achieve great things in the real estate market.

Should you apply for a hard money home loan in Troy, you're going to get what's perhaps most vital to real estate offers across the country — a fast closing of approximately fourteen days. What's more, the LTV value can range up to 70% of the property's valuation, as evaluated by a certified appraiser. With loan rates starting off near 10%, hard money real estate loans might seem, initially, to be higher in price compared to traditional bank financing. But once you appreciate that these are not long-term mortgage loans, the rate of interest may be misleading. The price tag on such short-term loans should be considered much like every other expense that you will encounter in the course of the project. Once you have turned the property and have made a good gain, you'll be able to get back this expense from the home — similar to recuperating the money spent on the brand-new home appliances that you've installed.

Moreover, even someone with weak credit can still qualify for a hard money mortgage. The customer's credit score isn't the primary deciding factor for Troy hard money lenders — in addition, they consider the house, how much it is worth, its location, and its capacity to earn back their financial commitment if things do not work out as planned. Additional factors that affect an individual's eligibility for a hard money real estate loan can include the amount he is able to put into a down payment, his past experience as a real estate investor, and price range of comparable, just recently sold residences in the vicinity.

So if you have stumbled upon a really great fixer-upper with a high chance of returns, you have also found yourself a hard money lender in Troy that is happy to finance your fix and flip project. Enter your info into the form or call us to discuss the property or properties you have in mind.