Imagine you've encountered this excellent bargain on a fix and flip property in a terrific neighborhood, and you happen to be either a skilled real estate investor or a first-timer who is looking to try his hand at flipping. Everybody knows that expert professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, are able to earn a typical profit of forty to fifty thousand dollars on their home projects. And indeed, they are helped in a big way by their professional know-how, auction expertise and knowledge of hard money loans. On the other hand, you are certain that your first class rehab and remodeling knowledge can help you do a great job on this project — furthermore, you already have arranged to have one of the finest building contractors in the business to take on the job.

But where do you find the necessary funding for home flipping? For those who get in touch with a regular lender, much like a bank for a mortgage loan, it very likely will take no less than 30-60 days for your approval to come through and the money to be accessible. Since most sellers prefer a fast closing, you might have to start looking for some other financing alternatives.

Moreover, should you have an unfavorable credit score or do not have a routine source of income, it is normally harder to be eligible for a a bank loan, seeing the tougher loan requirements banks have put in place in recent times. So will a shortage of funds keep you from sticking with your ambitions? Most certainly not, because you also have the 77904 hard money loan option.

A hard money home loan in 77904 provides what's probably most important to real estate investors — a quick closing time of as few as two weeks. Plus, the LTV value can reach up to 70% of the place's valuation, as estimated by a competent appraiser. With the interest rates starting out near 10%, hard money real estate loans may seem, initially, to be more expensive as compared with conventional bank loans. But if you consider these loans are not long-term home loans, the interest rate may be misleading. Short-term loans of a couple of months to a handful of years are best thought of as cost of capital, very much like all other expenses associated with a project. After you remodel and sell the home, recouping this expense is the same as recuperating the expense for new kitchen appliances you installed in the house.

Additionally, it's simple to obtain a hard money mortgage, regardless of whether your credit score is not that great. The borrower's credit score is not the lone deciding factor for 77904 hard money lenders — additionally, they evaluate the property, its market valuation, its location, and its potential to return their investment if things do not work out as intended. The total amount that a person can put down beforehand for the house, how much experience he has in real estate investments, and selling price of comparative homes in the same neighborhood are other factors that go into determining an applicant's suitability for a hard money real estate loan.

Locating a hard money lender in 77904 to finance your flipping business is not difficult, so long as the opportunity in front of you is promising and offers the right prospect for returns. Submit the form on this page or get in touch with us via phone and let's discuss the property or properties you have in mind.