Suppose that you've run into this really great bargain for a fix and flip property you found in a great neighborhood, and you happen to be either a seasoned real estate investor or a newbie who wants to try his hand at flipping. You've heard that competent house flippers, such as the married couple on HGTV's Flip or Flop, enjoy an impressive average profit of around $40,000 – $50,000. And indeed, they are helped in a big way as a result of their professional experience, auction expertise and knowledge of hard money loans. However, you're assured that your impressive rehab and remodeling knowledge will enable you to do an outstanding job on the project — additionally, you already have lined up one of the most recommended contractors in the business to take on this project.

But how exactly do real estate investors get financing? Should you get in touch with a standard lending institution, such as a bank for a mortgage loan, it very likely will take at least thirty to sixty days for the approval to come through and the funds to be given out. Because most sellers would prefer a fast closing, you may have to start looking for additional funding alternatives.

On top of this, banks have been tightening their lending standards in recent years, rendering it more difficult for someone to get a typical loan if their credit situation is not flawless or he does not have a consistent salaried profession. So does that leave you with no other option, but to give up your aspiration to venture into flipping? Certainly not, given that you also have the Woodsfield hard money loan alternative.

A hard money home loan in Woodsfield boasts what is perhaps most desired by real estate investors — a fast closing time of as few as two weeks. Additionally, loans are made up to 70% loan-to-value of the "as is" house's valuation, as established by a qualified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more costly than bank loans. But if you understand these loans are not long-term home loans, the rate of interest can be misleading. Short-term loans of a couple of months to a handful of years are best thought of in terms of cost of capital, similar to any other expense associated with a project. When you have resold the property and have made a positive gain, you can get back this expense from the property or home — similar to recouping the money necessary for the brand-new appliances for the kitchen that you've put in.

Additionally, it isn't difficult to obtain a hard money mortgage, even when your credit rating is not that superb. Woodsfield hard money lenders do not take on a loan strictly judging by the customer's credit score — rather they will analyze the home, its valuation and location, and the home's capacity to pay back the loan on its own. How much an applicant can put upfront for the home, his real estate experience, and price range of comparable properties in the vicinity are various other factors that go into ascertaining a person's eligibility for a hard money real estate loan.

So in the event you run into a very good and profitable flipping opportunity, relax knowing you'll have a hard money lender in Woodsfield, able to loan you the money you'll need. Complete the form or give us a call to discuss the property or properties you have in mind.