Suppose you've come across this excellent bargain for a fix and flip property in a great location, and you happen to be either a seasoned real estate investor or a first-timer who wants to try his hand at flipping. Everybody knows that skilled professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can readily earn a typical profit margin of $40,000 to $50,000 in their rehab business. It's fair to say their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction talents have played an important part in their results. However, you're convinced that your first class rehab and renovation knowledge will help you do an outstanding job on this house — in addition, you have already arranged to have one of the best contractors in town to take care of this project.

But capital is a different problem altogether. For those who go after a traditional bank loan, you will have to wait somewhere around 1-2 months up until the time the loan is authorized and the funding is ready to go. So if you're anticipating a fast closing, it is important to realize that this may cost you weeks, making you miss out on the house.

With banks bringing in tougher loan guidelines in recent years, it's become much harder for a self-employed person to obtain a mortgage loan, especially when his credit rating is not perfect. So does this mean you have no option, but to abandon your aspiration to venture into the fix and flip business? Not at all, particularly while 77031 hard money loans will assist you to accomplish many amazing things in real estate.

A hard money home loan in 77031 promises what's probably most crucial to real estate investors — a very fast closing time of as few as fourteen days. In addition, the LTV value can reach up to 70% of the property value, as determined by a certified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as more pricey than bank financing. But once you understand these are not long-term mortgage loans, the rate of interest can be misleading. The price of such short-term loans should be looked at much like any other cost that you might encounter in the course of the project. And when you have flipped the property, recovering this expense is the exact same as recovering the expense for all the bathroom upgrades you performed.

What's more, it's easy to obtain a hard money mortgage, even if your credit situation is not that impressive. Rather than focusing solely on the person's credit score or net income, 77031 hard money lenders, who could be a privately owned company or an individual, approve a loan as a result of examining the home value, ease of marketability, its location, and the possibility of getting back their capital should they have to foreclose the loan. Adding to that, if the person have proven experience in comparable real estate endeavors, can place down money for the down payment, and the value of equivalent homes in the neighborhood works to his benefit, he has a really good chance of qualifying for a hard money real estate loan.

So in the event you run into an outstanding and lucrative investment opportunity, be assured you will have a hard money lender in 77031, in a position to lend you the capital you may need. Enter your info into the form on this page or give us a call and let's talk about your project.