Imagine you've run into this excellent deal for a fix and flip property you found in a terrific neighborhood, and you happen to be either an experienced real estate investor or a first-timer who wants to try his hand at flipping. Professional home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a gain of forty to fifty grand on average. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have had a significant part in their success. Nonetheless, your rehab and renovation knowledge isn't that bad either — in any case, you have already located the right contractor to handle the project.

But funding is often a separate problem entirely. When you meet with a customary lender, such as a bank for financing, it very likely will take at least 30-60 days for the acceptance to be completed and the funds to be distributed. Since most home owners would prefer a fast closing, you might need to start looking for additional funding options.

To add to it, banks have been tightening up their lending criteria in recent times, which makes it challenging for someone to get a regular loan if their credit circumstances are not perfect or he doesn't have a regular salaried occupation. So does that leave you with no option, but to give up your dream of getting into the fix and flip business? Absolutely not, because you always have the Waynesburg hard money loan option.

A hard money home loan in Waynesburg can provide what's deemed vital to most real estate transactions — a quick closing of only a few weeks and at times even less. In addition, the LTV value can range up to 70% of the home value, as estimated by a certified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be higher in price than bank lending products. But the lengths of these loans tend to be quite short, making the rate less significant. Short-term loans of several months to a few years are best approached in terms of cost of capital, the same as every other expense involved with a project. When you have sold the house and have made a successful financial gain, you'll be able to get back this expense from the home — the same as recouping the money necessary for the brand-new kitchen appliances that you have put in.

Apart from this, hard money mortgages are not difficult to qualify for, even if you have got bad credit. Instead of focusing exclusively on the applicant's credit score or income, Waynesburg hard money lenders, who could be a privately owned company or an individual person, authorize a loan after analyzing the home value, how easy it will be to market, its location, and the possibility of recouping their capital in case of foreclosure. On top of this, if the applicant can demonstrate prior experience in equivalent real estate projects, can place down cash towards the down payment, and the cost of comparable homes in the vicinity works in his favor, he has got a really good shot of qualifying to obtain a hard money real estate loan.

So if you have stumbled upon a really great home to flip with a high prospect of returns, you have also found yourself a hard money lender in Waynesburg who is ready to provide funding for your rehab projects. Fill out the form or give us a call to discuss the property or properties you have in mind.