There's this amazing possibility for renovating and flipping this nice old house in a good part of town and it seems a lot like the deal you have been wanting for a long time. Expert house flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a gain of $40-$50k on average. Naturally, you also understand that their successes are credited to the simple fact that they are experts, are proficient in hard money loans, they understand the market quite well and additionally, they are good at working a public auction for getting a good price. Nonetheless, your rehab and remodeling knowledge isn't that bad either — aside from that, you have already located a good licensed contractor to tackle the project.

But how do real estate investors find funds? A traditional lending institution, for instance a bank, takes a minimum of 1 to 2 months to consent to the mortgage and hand over the cash. Given that sellers give preference to a fast closing, it may be advisable to begin looking for some other funding options.

On top of this, banks have been tightening their lending criteria in recent years, rendering it more difficult for a person to get a regular home loan if their credit rating is not flawless or he does not possess a regular salaried profession. So does that leave you with no other option, but to give up your aspiration of getting into the fix and flip business? Definitely not, given that you always have the Wharton hard money loan option.

A hard money home loan in Wharton promises what is perhaps most desired by real estate investors — a quick closing time period of as little as 2 weeks. Plus, the LTV value can go up to 70% of the place's valuation, as determined by a credentialed appraiser. With loan rates starting off around 10%, hard money real estate loans may appear, at first glance, to be more costly compared to traditional bank loans. But in reality, the lending rate is not as useful a measure for these loans, given that they aren't long-term loans. The price of such short-term loans should be evaluated much like any other cost that you would have to meet pertaining to the project. After you fix up and resell the house, recouping this expense is no different than recovering the cost of the stainless steel appliances you placed into the house.

In addition, even individuals with bad credit can still qualify for a hard money mortgage. Wharton hard money lenders don't authorize a loan exclusively based on the person's credit score — rather they will evaluate the home, where it is located and what it is worth, and the property's capacity to pay back the loan independent of the borrower. The amount that a person can put down beforehand for the house, his real estate experience, and price range of comparable homes in the same area are other details that go into determining a borrower's suitability for a hard money real estate loan.

So in the event you run into a good and worthwhile flipping opportunity, be assured you'll have a hard money lender in Wharton, in a position to loan you the money that you need. Submit the contact form or give us a call to discuss your property.