Imagine you've run across this truly good deal for a fix and flip property located in a terrific neighborhood, and you happen to be either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. Most folks know that expert professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to generate an average profit margin of forty to fifty thousand dollars in their rehab business. And yes, they are helped in a big way as a result of their professional knowledge, auction abilities and knowledge of hard money loans. Nonetheless, your rehab and renovation skills aren't bad either — besides, you've already located a suitable building contractor to start this job.

But funding is often a different problem altogether. Should you go after an ordinary bank loan, you will need to wait roughly one to two months until the financing is authorized and the funds are ready to go. Thus if you are expecting a fast closing, it is important you understand that this may cost you a few weeks, causing you to miss out on the home.

As well as this, if you have a less-than-perfect credit score or don't receive a conventional income source, it may be more challenging for you to qualify for a bank loan, with the more stringent loan requirements banks have introduced recently. So do you have to give up and forego your desire to venture into real estate? Most certainly not, because you always have the Valley Stream hard money loan alternative.

A hard money home loan in Valley Stream provides what is possibly most important to real estate investors — a quick closing time of as few as 14 days. Plus, the LTV value can range up to 70% of the place's valuation, as determined by a credentialed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be higher priced than bank financing. But when you consider these loans are not long-term mortgage loans, the rate of interest may be misleading. When it comes to short-term loans of several years or less, you should consider them just like you would other expenses for your project. Once you've turned the property or home and have made a successful financial gain, you can reclaim this expense from the home — just like recouping the money necessary for the brand-new appliances for the kitchen that you have put in.

What's more, it is simple to be eligible for a hard money mortgage, even if your credit score is not that extraordinary. Valley Stream hard money lenders do not approve a loan strictly based on the applicant's credit score — rather they additionally assess the property, its valuation and location, and the home's ability to pay back the loan on its own. Adding to that, if the applicant have proven experience in similar real estate endeavors, can put down money towards a down payment, and the value of equivalent properties in the vicinity works in his favor, he has got an excellent likelihood of being approved to obtain a hard money real estate loan.

So in case you have stumbled upon a really great home to flip with a significant potential for returns, you have also found yourself a hard money lender in Valley Stream who is prepared to fund your rehab ventures. Submit the contact form on this page or give us a call to talk about your project.