Suppose that you've come across this truly good bargain for a fix and flip property you found in an ideal location, and you're either a skilled real estate investor or a first-timer who is looking to try his hand at flipping. You've heard that competent property flippers, such as the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average return close to forty to fifty thousand dollars. And indeed, they are helped in a big way as a result of their professional knowledge, auction skills and knowledge of hard money loans. Having said that, you've likewise been brushing up your rehab and renovation skills, have got a building contractor lined up and are positive that you will be able to do a stellar job on this home.

But how do you find the needed financing for flipping? Should you get in touch with a common lending institution, much like a bank for a mortgage loan, it can take, at a minimum, thirty to sixty days for the acceptance to be completed and your money to be dispersed. So if you are hoping for a fast closing, you need to be aware that this could set you back by a few weeks, making you miss out on the opportunity.

With banks introducing harder loan criteria in the past few years, it is now much harder for a self-employed individual to get a home loan, especially if his credit situation is not optimal. So will a lack of funds prevent you from sticking to your dream? Most certainly not, given that you always have the 76001 hard money loan option.

A hard money home loan in 76001 promises what is possibly most crucial to real estate investors — a very fast closing in as little as a few weeks. Also, hard money lenders frequently agree to lending up to 70% LTV of the property or home value, as calculated by a licensed third-party appraiser. Some individuals consider hard money real estate loans to be more pricey than regular financing, considering lending rates for such loans generally start off at 10%. But if you consider these are not long-term home loans, the rate may be misleading. Short-term loans of several months to a handful of years are best thought of in terms of cost of capital, the same as any other financial outlay involved with a project. After you renovate and unload the property, recouping this expense is the same as recouping the cost of the stainless steel appliances you put in the place.

In addition, even individuals with weak credit will be able to be eligible for a hard money mortgage. As an alternative for focusing solely on the borrower's credit score or wages, 76001 hard money lenders, who may be a private company or an individual person, say yes to a loan as a result of analyzing the property value, its marketability, its location, and the probability of getting back their money in case of foreclosure. The total amount that a borrower can put upfront towards the property, how much experience he has in real estate investments, and selling price of comparable homes in the same area are other factors that go into establishing a person's suitability for a hard money real estate loan.

If you happen to have stumbled upon an excellent home to flip with a significant probability of returns, you've also stumbled upon a hard money lender in 76001 that's prepared to provide financing for your fix and flip ventures. Fill out the form on this page or give us a call and let's talk about your property or properties.