Suppose that you've stumbled upon this truly good bargain for a fix and flip property you found in an ideal neighborhood, and you are either a seasoned real estate investor or a first-timer who is looking to try out flipping houses. Expert house flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a profit of $40-$50k for most homes. Undoubtedly, you also realize that their success can be attributed to the fact that they are industry experts, are proficient in hard money loans, they know market trends really well and they also are good at working a public auction for getting a good price. However, you're certain that your impressive rehab and renovation knowledge will enable you to do a great job on this property — additionally, you already have arranged to have one of the most recommended general contractors in town to take care of the job.

But how exactly do real estate investors get money? Should you go after a conventional loan from the bank, you will end up waiting somewhere around 30-60 days up until the time the mortgage is authorized and the money is ready. Since the majority of home owners favor a fast closing, you may have to begin looking for additional funding alternatives.

To add to it, banks have been tightening up their lending criteria in recent years, rendering it more challenging for someone to get a regular home loan if their credit score is not perfect or he does not have a consistent salaried job. So should you admit defeat and forego your ambition to get into real estate? Never, because you can always go the Vienna hard money loan route to pay for your rehab project.

A hard money home loan in Vienna boasts what's probably most crucial to real estate investors — a very fast closing in as little as two weeks. In addition, the LTV value can go up to 70% of the property value, as evaluated by a credentialed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank financing. But if you understand these are not long-term mortgage loans, the interest rate tends to be misleading. The cost of such short-term loans should be looked at on par with any other financial outlay that you will have to meet pertaining to the project. And when you have finally turned the property, recouping this expense is the exact same as recouping the expense for all the kitchen and bath updates you performed.

Furthermore, even someone with poor credit can still be eligible for a hard money mortgage. Vienna hard money lenders do not take on a loan solely judging by the person's credit score — rather they also evaluate the property or home, its value and location, and the property's capability to pay back the financing without the help of the applicant. Additional variables that have an impact on a person's approval for a hard money real estate loan can include the amount he is in a position to put towards a down payment, his past experience as a real estate investor, and price of comparative, recently sold properties in the neighborhood.

So should you run into a really good and profitable investment opportunity, relax knowing you will have a hard money lender in Vienna, willing to loan you the funds you will need. Complete the contact form on this page or give us a call to discuss the property or properties you have in mind.