Imagine you've run across this really great bargain on a fix and flip property located 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. Most folks know that capable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to earn an average profit of forty to fifty thousand dollars on their home projects. No need to explain that their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have had a big role in their successes. Nonetheless, your rehab and remodeling knowledge isn't that bad either — aside from that, you have already found an ideal licensed contractor to start this job.

But funding is usually a different issue entirely. In the event you apply for an ordinary loan via a bank, you will need to wait approximately 1-2 months until eventually the mortgage loan is authorized and your funding is ready. Since the majority of home owners would rather have a fast closing, it may be advisable to start seeking out some other financing alternatives.

Moreover, should you have a sub-optimal credit score or don't receive a conventional source of income, it is usually harder for you to be eligible for a bank financing, with the tighter loan guidelines banks have issued recently. So does this leave you with no option, but to give up your dream of getting into home renovating? By no means, especially when 77581 hard money loans can help you realize great things in the real estate market.

A hard money home loan in 77581 offers what is deemed essential to most real estate sales — a fast closing of only a few weeks and more often than not less. Plus, the LTV value can go up to 70% of the home's valuation, as evaluated by a certified appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as more costly than bank loans. But usually, the interest rate is not as relevant for these loans, given that they will never be long-term loans. Short-term loans of several months to a handful of years are best understood as cost of capital, very much like all other expenses related to a project. And once you have finally turned the property, recovering this expense is identical to recuperating the expense for the bathroom upgrades you did.

Besides, hard money mortgages are easy qualifying, even when you posses bad credit. 77581 hard money lenders do not take on a loan exclusively on the basis of the borrower's credit score — instead they will assess the home, its valuation and location, and the home's ability to pay back the loan independent of the person. Adding to that, if the applicant can demonstrate past experience in similar real estate projects, can put down money for the down payment, and the price of comparable homes in the neighborhood works to his benefit, he has a very good chance of being approved to obtain a hard money real estate loan.

So should you run into a very good and worthwhile investment opportunity, relax knowing you'll have a hard money lender in 77581, in a position to loan you the funds you need. Complete the form or get in touch with us via phone to discuss your project.