You discovered this outstanding opportunity to fix and flip this wonderful old condo in a fantastic location and it looks a lot like the deal you have been wanting for a long time. Expert house flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a profit of $40-$50k on a consistent basis. No need to explain that their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have been large factors to their successes. Nevertheless, you're certain that your impressive rehab and remodeling abilities can help you do a great job for this house — additionally, you've already lined up one of the most sought after contractors in the area to handle the job.

But how can real estate investors get funds? Should you apply for a regular loan via a bank, you will need to wait roughly 30-60 days until eventually the mortgage is authorized and your money is accessible. Considering that the home owners are seeking a fast closing, that does not seem like a good idea to you in the slightest.

With banks adding harder loan guidelines in the past several years, it's become tougher for a self-employed individual to find a mortgage loan, especially if his credit rating is not perfect. So does this mean you are without an option, but to give up your aspiration of getting into rehabbing? Certainly not, due to the fact you could always use the Valdez hard money loan approach to pay for your rehab project.

If you decide to apply for a hard money home loan in Valdez, you'll get what's possibly most essential to real estate purchases throughout the country — a fast closing of about 14 days. Plus, the LTV value can go up to 70% of the home's valuation, as estimated by a competent appraiser. With the interest rates starting out near 10%, hard money real estate loans may look, at first, to be more expensive as compared with conventional bank financing. But in reality, the interest rate is not as relevant for these loans, given that they will never be long-term financing. Short-term loans of a couple months to a few years are best thought of as cost of capital, similar to every other expense related to a project. And as soon as you have sold the property or home, recouping this expense is comparable to recovering the expense for the bathroom improvements you performed.

In addition, even a person with bad credit can still be eligible for a hard money mortgage. Rather than focusing exclusively on the applicant's credit score or source of income, Valdez hard money lenders, who may be a private company or an individual person, authorize a loan after analyzing the property value, its marketability, its location, and the possibility of recuperating their capital should they have to foreclose the loan. Adding to that, if the applicant can demonstrate prior experience in comparable real estate ventures, can place down money towards a down payment, and the value of comparative properties in the area works in his favor, he has an excellent likelihood of being eligible for a hard money real estate loan.

So if you have found an excellent home to flip with a high probability of returns, you have also found yourself a hard money lender in Valdez who's happy to provide financing for your fix and flip venture. Fill out the contact form or call us and let's discuss the project you have in mind.