Suppose you've come across this really great deal on a fix and flip property you found in a great neighborhood, and you are either a seasoned real estate investor or a newbie who is looking to try out flipping houses. Everybody knows that expert professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can readily generate an average profit margin of $40,000 to $50,000 on their home projects. Naturally, you also understand that their successes can be attributed to the simple fact that they are industry experts, are proficient in hard money loans, they understand market trends quite well and they also know how to work an auction to buy their properties at a good deal. Still, your rehab and remodeling knowledge isn't that bad either — aside from that, you've already identified an ideal building contractor to handle the home.

But money is a separate issue altogether. A standard lender, for instance a bank, takes at least 1-2 months to consent to the financing and deliver the cash. Because most sellers wish to have a fast closing, you may want to start searching for some other financing alternatives.

What's more, if you have a sub-optimal credit rating or do not have a consistent income, it may be harder to qualify for bank financing, with the tighter loan requirements banks have introduced in recent times. So does that leave you with no option, but to give up your ambition to venture into home renovating? By no means, because you can always use the Washingtonville, New York hard money loan approach to fund your flipping project.

A hard money home loan in Washingtonville provides you with what is possibly most important to real estate investors — a fast closing time period of as little as fourteen days. Also, hard money lenders frequently agree to lending up to 70% LTV of the home's valuation, as identified by a qualified third-party evaluator. With loan rates starting at about 10%, hard money real estate loans might appear, at first glance, to be higher priced in comparison with traditional bank loans. But once you understand these are not long-term home loans, the interest rate tends to be misleading. As it pertains to short-term loans of 1 or 2 years or even less, you should look at them just like you would other expenses for the project. And when you've finally flipped the property, recouping this expense is comparable to recouping the expense for the bathroom upgrades you performed.

Besides, hard money mortgages are not hard to qualify for, even when you posses poor credit. The person's credit score isn't the lone determining factor for Washingtonville hard money lenders — they also evaluate the house, its market value, its location, and its ability to bring back their financial commitment if everything does not go as intended. On top of that, if the borrower can demonstrate prior experience in equivalent real estate projects, can put down money towards a down payment, and the cost of equivalent properties in the area works in his favor, he will have an excellent likelihood of being eligible to obtain a hard money real estate loan.

So in case you have stumbled upon a wonderful fixer-upper with a high chance of returns, you have also discovered a hard money lender in Washingtonville who is happy to provide financing for your flipping ventures. Complete the contact form on this page or give us a call to discuss the project you have in mind.