Suppose that you've stumbled upon this excellent bargain for a fix and flip property you found in a great neighborhood, and you're either a skilled real estate investor or a newbie who hopes to try his hand at flipping. You've heard that professional house flippers, similar to the couple on HGTV's Flip or Flop, have a remarkable average profit margin close to $40,000 – $50,000. And indeed, they are helped in a big way due to their professional experience, auction skills and knowledge of hard money loans. Having said that, you've likewise been brushing up your rehab and renovation knowledge, have a very good general contractor lined up and are certain that you can do a great job on this property.

But how can real estate investors obtain financing? In the event you meet with a standard lending institution, much like a bank for a loan, it's very likely going to take, at a minimum, four to eight weeks for the acceptance to be completed and your funds to be distributed. Because most home owners wish to have a fast closing, you might need to begin looking for additional funding alternatives.

Moreover, for those who have an unfavorable credit rating or don't have a consistent income, it is usually more difficult for you to be eligible for a bank financing, seeing the more stringent loan criteria banks have put in place as of late. So does that mean you are without an option, but to drop your aspiration of venturing into home renovating? Not at all, particularly while 77351 hard money loans enable you to realize great things in the real estate market.

If you put in an application for a hard money home loan in 77351, you have access to what's perhaps most vital to real estate purchases across the country — a fast closing of about a couple weeks. Also, hard money lenders are able to do lending up to 70% LTV of the home value, as calculated by a licensed third-party evaluator. With lending rates starting out around 10%, hard money real estate loans might appear, initially, to be more pricey compared to conventional bank lending products. But if you understand these are not long-term loans, the interest rate tends to be misleading. Short-term loans of a couple months to a handful of years are best looked at as cost of capital, similar to any other expenditure in connection with a project. After you renovate and unload the home, recuperating this expense is the same as recuperating the cost of the home appliances you installed in the home.

Besides, hard money mortgages are not difficult to qualify for, even in the event you have got less-than-perfect credit. As an alternative for focusing solely on the person's credit score or net income, 77351 hard money lenders, who could be a privately owned company or an individual, authorize a loan as a result of examining the property value, its salability, its location, and the probability of recuperating their capital in case of foreclosure. Several other criteria that affect a borrower's acceptance for a hard money real estate loan can include the amount he is able to put towards a down payment, his prior experience being a real estate investor, and price of comparable, fairly recently sold properties in the area.

Searching for a hard money lender in 77351 to fund your renovation project is not hard, provided that the opportunity that lies before you is promising and possesses a strong potential for returns. Submit the contact form on this page or give us a call and let's discuss the project you have in mind.