Imagine you've come across this really great bargain for a fix and flip property you found in an ideal location, and you are either a skilled real estate investor or a newbie who hopes to try his hand at flipping. Everyone knows that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can make an average profit margin of $40,000 to $50,000 on their home projects. No need to explain that their rehabbing experience, understanding of hard money loans, expertise in their market, and auction talents have had a big part in their results. Nonetheless, your rehab and renovation knowledge isn't bad either — besides, you have already located the right licensed contractor to take on the project.

But where do real estate investors obtain funds? If you meet with a common lender, such as a bank for funding, it's in all likelihood going to take, at a minimum, four to eight weeks for the approval to come through and the funds to be given out. With the home owners looking for a fast closing, that doesn't appear like a wise idea to you at all.

To add to it, banks have been tightening their lending criteria in recent years, rendering it more hard for people to obtain a typical loan if their credit situation is not perfect or he is lacking a regular salaried job. So does that mean you have no option, but to abandon your dream to venture into rehabbing? Most certainly not, given that you also have the West Columbia hard money loan alternative.

A hard money home loan in West Columbia offers what's viewed as crucial to many real estate transactions — a quick closing of only a 2-3 weeks and more often than not less. What's more, the LTV value can range up to 70% of the place's valuation, as evaluated by a certified appraiser. Some people believe hard money real estate loans to be costlier than ordinary loans, since the lending rates of such loans often start out at 10%. But the term lengths for these loans are quite short, making the interest rate far less significant. Short-term loans of a couple of months to a few years are best approached as cost of capital, much like all other costs involved with a project. After you rehab and sell the house, recovering this expense is just like recouping the one for home appliances you put in the place.

Besides, hard money mortgages are not hard to qualify for, whether or not you have very bad credit. West Columbia hard money lenders do not take on a loan strictly judging by the customer's credit score — rather they also look at the property or home, where it is located and what it is worth, and the property's capacity to pay back the financing without the help of the applicant. On top of that, if the borrower have proven experience in comparable real estate ventures, can place down cash towards a down payment, and the value of similar properties in the area works to his benefit, he will have a really good likelihood of being approved for a hard money real estate loan.

So any time you come across a really good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in West Columbia, prepared to loan you the capital you need. Complete the form on this page or call us to discuss your property or properties.