Suppose you've run into this truly good 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. Expert home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of $40-$50k on the majority of projects. Without question, their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have played a big part in their successes. On the other hand, you're convinced that your superb rehab and remodeling skills can help you do a superb job for this property — additionally, you already have lined up one of the best contractors in the business to work on the job.

But funding can be a separate issue altogether. Should you get in touch with a regular lending institution, like a bank for a loan, it is likely going to take a minimum of 4-8 weeks for your acceptance to be completed and the money to be sent out. Given that home owners wish to have a fast closing, you may want to start looking for other funding options.

With banks bringing in harder loan criteria in the past few years, it's become harder for a self-employed person to obtain a mortgage loan, especially when his credit circumstances are not perfect. So will a lack of funding keep you from sticking with your ambitions? Never, because you could always go the Williamsport hard money loan route to fund your home renovating project.

A hard money home loan in Williamsport can provide what is deemed essential to many real estate deals — a fast closing of only a couple of weeks and sometimes less. Further, loan amounts can be made up to 70% loan-to-value of the "as is" property's valuation, as calculated by a professional appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank lending products. But usually, the rate of interest isn't as pertinent for these loans, since they are not long-term financing. Short-term loans of a couple months to a handful of years are best approached in terms of cost of capital, the same as any other financial outlay associated with a project. Right after you fix up and resell the home, recouping this expense is no different than recovering the money you spent for stainless steel appliances you installed in the home.

Aside from that, hard money mortgages are easy qualifying, even when you have got a low credit rating. The customer's credit score will not be the sole determining factor for Williamsport hard money lenders — in addition, they consider the home, what is it valued at, where it is located, and its capacity to earn back their financial commitment if everything does not go as intended. Additional criteria that have an impact on a person's approval for a hard money real estate loan include how much money he can put into a down payment, his prior experience as a real estate investor, and selling price of comparative, fairly recently sold residences in the area.

So if you have stumbled upon a really great fixer-upper with a high potential for returns, you have also stumbled upon a hard money lender in Williamsport that is happy to provide funding for your rehab ventures. Fill out the contact form on this page or get in touch with us via phone to discuss your property or properties.