There's this phenomenal opportunity to renovate and flip this nice old property in a very good area and it looks like the one you've been eagerly waiting on for quite some time. Many people know that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can readily make an average profit of forty to fifty thousand dollars when they flip properties. And without a doubt, they are aided in a major way via their professional experience, auction abilities and understanding of hard money loans. Still, your rehab and renovation skills aren't that bad either — aside from that, you've already found a suitable general contractor to take on the project.

But how exactly do real estate investors obtain funding? A traditional lender, say for example a bank, takes at the very least one to two months to authorize the loan and deliver the funds. Given that sellers would prefer a fast closing, you might want to start looking for additional funding options.

As well as this, should you have a sub-optimal credit rating or don't have a consistent source of income, it can be harder for you to be eligible for a a bank loan, considering the tighter loan criteria banks have put in place recently. So will a lack of funds keep you from sticking to your dream? By no means, because you could always go the 78220 hard money loan route to finance your flipping project.

When you apply for a hard money home loan in 78220, you will get what's probably most essential to real estate negotiations across the country — a fast closing of roughly a couple weeks. Besides that, hard money lenders can approve funding up to 70% LTV of the property value, as identified by a professional third-party evaluation. A number of people regard hard money real estate loans to be costlier than regular financing, since the lending rates of such loans often start at 10%. But when you appreciate that these loans are not long-term mortgage loans, the rate of interest can be misleading. The cost of such short-term loans should be looked at much like every other financial outlay that you would need to meet pertaining to the project. After you rehab and sell off the property, recovering this expense is just like recovering the money you spent for new kitchen appliances you placed into the house.

In addition, even a person with bad credit can still be eligible for a hard money mortgage. The borrower's credit score isn't the primary determining factor for 78220 hard money lenders — they also examine the property, its market valuation, where it is located, and its potential to bring back their financial commitment if things do not go as planned. Additional factors that impact an applicant's eligibility for a hard money real estate loan can include how much he is able to put into a down payment, his previous experience as a real estate investor, and price of comparable, fairly recently sold properties in the neighborhood.

So in case you have stumbled upon an excellent real estate opportunity with a high probability of returns, you have also discovered a hard money lender in 78220 that's happy to finance your rehab projects. Submit the form or get in touch with us via phone and let's talk about your project.