A fabulous deal on a fix and flip opportunity located in an excellent neighborhood all of a sudden shows up — seems so good that it's hard to believe. You may have heard that professional property flippers, like the husband and wife on HGTV's Flip or Flop, have an impressive average return near $40,000 – $50,000. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have played a significant role in their success. Nevertheless, you are convinced that your first class rehab and renovation skills will enable you to do a great job on this home — furthermore, you've already arranged to have one of the most sought after building contractors in town to handle this job.

But funding is a separate question altogether. A typical lending institution, for instance a bank, takes no less than one to two months to approve the mortgage and release the monies. So if you're hoping for a fast closing, it's important for you to understand or know that this may set you back by a couple of weeks, making you lose out on the house.

With banks adding more challenging loan standards in the past several years, it's become tougher for a self-employed individual to obtain a mortgage loan, particularly if his credit circumstances are not flawless. So should you admit defeat and abandon your dream to get into real estate? Definitely not, seeing as you also have the Wildwood hard money loan option.

A hard money home loan in Wildwood provides what is possibly most important to real estate investors — a quick closing time of as few as a few weeks. Aside from that, financing is made up to 70% loan-to-value of the as-is property value, as deemed by a licensed appraiser. With interest rates starting out at about 10%, hard money real estate loans may appear, at first, to be more pricey when compared with traditional bank loans. But if you consider these are not long-term loans, the interest rate tends to be misleading. Short-term loans of several months to a handful of years are best looked at as cost of capital, similar to all other expenses associated with a project. After you remodel and sell off the property, recovering this expense is just like recouping the cost of the home appliances you placed into the property.

Aside from that, hard money mortgages are easy qualifying, even if you have a low credit rating. As an alternative for focusing entirely on the applicant's credit score or source of income, Wildwood hard money lenders, who may be a private company or an individual, approve a loan as a result of analyzing the property value, its marketability, where it is located, and the probability of recuperating their money in case of foreclosure. On top of this, if the person can demonstrate prior experience in comparable real estate projects, can put down cash for the down payment, and the cost of comparative houses in the neighborhood works in his favor, he has got an excellent shot of being eligible for a hard money real estate loan.

So if you have stumbled upon a really good home to flip with a huge prospect of returns, you've also stumbled upon a hard money lender in Wildwood that is willing to provide financing for your rehab projects. Enter your info into the contact form on this page or give us a call to talk about your property or properties.