Imagine you've run into this truly good deal for a fix and flip property you found in an ideal location, and you happen to be either an experienced real estate investor or a first-timer who really wants to try his hand at flipping. You've probably heard that veteran home flippers, much like the husband and wife on HGTV's Flip or Flop, turn an impressive average profit close to forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction talents have played a big role in their results. Nonetheless, your rehab and remodeling knowledge isn't bad either — in any case, you've already identified the right licensed contractor to start the project.

But financing is a separate problem altogether. Should you apply for an ordinary loan via a bank, you will end up waiting around roughly 30-60 days up until the loan is approved and your funding is ready. So if you are expecting a fast closing, it is important to understand or know that this will cost you a few weeks, causing you to lose out on the opportunity.

With banks bringing in harder loan standards in recent years, it's become more difficult for a self-employed individual to get a home loan, especially if his credit rating is not optimal. So will a shortage of financing keep you from pursuing your dream? Never, considering that you could always use the 77486 hard money loan approach to pay for your flipping project.

When you obtain a hard money home loan in 77486, you're going to get what is possibly most essential to real estate negotiations across the country — a very fast closing of about fourteen days. In addition, the LTV value can go up to 70% of the place's valuation, as determined by a credentialed appraiser. A number of people consider hard money real estate loans to be more costly than standard loans, since the lending rates of such loans typically start off at 10%. But in reality, the interest rate is not as useful a measure for these loans, given that they will never be long-term financing. When it comes to short-term loans of 1 or 2 years or less, you should think about them similar to every other expenditure for the project. Right after you renovate and sell the home, recouping this expense is the same as recouping the cost of the new kitchen appliances you placed into the place.

Additionally, it is easy to obtain a hard money mortgage, even when your credit score is not that extraordinary. The applicant's credit score will not be the primary determining factor for 77486 hard money lenders — they also look at the piece of real estate, its market valuation, its location, and its ability to return their financial commitment if things should not go as planned. Other factors that influence a person's approval for a hard money real estate loan can include how much he is in a position to put into a down payment, his former experience as a real estate investor, and price of similar, just recently sold residences in the area.

So any time you come across an outstanding and worthwhile flipping opportunity, relax knowing you will have a hard money lender in 77486, ready to lend you the money that you need. Fill out the contact form on this page or call us and let's talk about your property.