Suppose that you've come across this truly good bargain for a fix and flip property in an ideal neighborhood, and you happen to be either a skilled real estate investor or a newbie who is looking to try his hand at flipping. You've probably heard that professional house flippers, like the married couple on HGTV's Flip or Flop, have a remarkable average return near $40,000 – $50,000. And without a doubt, they are aided in a major way via their professional experience, auction expertise and knowledge of hard money loans. On the other hand, you're convinced that your impressive rehab and remodeling knowledge will help you do a quality job on the project — furthermore, you already have lined up one of the premier contractors in the area to take care of this job.

But where can you find the needed funding for home flipping? Should you approach a standard lending institution, much like a bank for a mortgage loan, it can take, as a minimum, 30-60 days for the acceptance to come through and the funds to be given out. With all the sellers looking for a fast closing, that does not seem like a good option to you whatsoever.

With banks adding harder loan criteria in the past several years, it has become more difficult for a self-employed person to get a mortgage loan, especially when his credit rating is not perfect. So does that leave you with no option, but to drop your aspiration to venture into the fix and flip business? Most certainly not, seeing as you always have the Wilkes-Barre hard money loan alternative.

If you put in an application for a hard money home loan in Wilkes-Barre, you're going to get what is probably most essential to real estate purchases across the country — a quick closing of approximately fourteen days. What's more, the LTV value can reach up to 70% of the property value, as estimated by a credentialed appraiser. With the interest rates starting out near 10%, hard money real estate loans might appear, at first, to be higher in price compared to traditional bank loans. But the time frames of these loans tend to be rather short, making the interest rate less important. The cost of such short-term loans ought to be viewed much like every other expenditure that you will encounter in the course of the project. And once you've flipped the property or home, recovering this expense is identical to recovering the expense for the bathroom improvements you did.

Apart from this, hard money mortgages are not hard to qualify for, even when you posses poor credit. The borrower's credit score will not be the single determining factor for Wilkes-Barre hard money lenders — in addition, they examine the home, its market valuation, where it is located, and its potential to return their investment if everything does not go as intended. How much of their own money a borrower can put down in advance towards the house, how much practical experience he has in real estate investing, and price range of comparative properties in the same vicinity are additional factors that go into establishing an applicant's qualification for a hard money real estate loan.

So in case you have stumbled on a really great home to flip with a significant chance of returns, you've also stumbled upon a hard money lender in Wilkes-Barre who's ready to fund your flipping venture. Fill out the contact form on this page or give us a call and let's talk about your property.