Suppose that you've stumbled upon this excellent bargain 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 hopes to try his hand at flipping. Many people know that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, are able to earn a typical profit margin of forty to fifty thousand dollars on their flips. Of course, you also know that their great results are attributed to the simple fact that they are professionals, are well versed in hard money loans, they know market trends quite well and additionally, they are good at working an auction for getting an appropriate price. Nonetheless, your rehab and remodeling skills aren't that bad either — in any case, you've already located a good licensed contractor to tackle the project.

But where can you obtain the necessary capital for home flipping? Should you go after a conventional bank loan, you will have to wait around somewhere around one to two months before the mortgage loan is authorized and the funds are accessible. Considering that the sellers are seeking a fast closing, that does not appear to be a good option to you at all.

With banks bringing in more challenging loan requirements in the past several years, it's become harder for a self-employed person to get a mortgage loan, particularly if his credit situation is not flawless. So will a shortage of funding stop you from sticking with your dream? Certainly not, because you could always use the 77076 hard money loan approach to finance your rehab project.

A hard money home loan in 77076 can provide what's considered crucial to many real estate transactions — a very fast closing of just a couple of weeks and oftentimes less. Furthermore, hard money lenders frequently agree to loans up to 70% LTV of the property or home value, as calculated by a credentialed third-party evaluator. With rates starting off at about 10%, hard money real estate loans might seem, at first glance, to be more costly compared to conventional bank loans. But usually, the rate of interest isn't as pertinent for these loans, since they aren't long-term financing. When it comes to short-term loans of a few years or even less, you should think about them identical to every other expenditure for your project. Right after you fix up and sell off the property, recuperating this expense is the same as recouping the cost of the new kitchen appliances you placed into the place.

Besides, hard money mortgages are not difficult to qualify for, even when you posses below-average credit. As an alternative for focusing exclusively on the borrower's credit score or wages, 77076 hard money lenders, who can be a privately owned company or an individual, approve a loan after examining the home value, how easy it will be to market, its location, and the probability of recouping their capital if they have to foreclose the loan. Additional criteria that have an impact on an individual's eligibility for a hard money real estate loan can include how much he is able to put into a down payment, his past experience as a real estate investor, and selling price of comparable, recently sold homes in the neighborhood.

Locating a hard money lender in 77076 to finance your flipping business is not very hard, as long as the opportunity before you is promising and offers a strong potential for returns. Fill out the contact form on this page or give us a call and let's discuss your property or properties.