Imagine you've stumbled upon this excellent deal on a fix and flip property in a great neighborhood, and you happen to be either an experienced real estate investor or a first-timer who wants to try his hand at flipping. You've heard that competent house flippers, such as the couple on HGTV's Flip or Flop, turn an impressive average return near $40,000 – $50,000. Undoubtedly, you also understand that their success can be credited to the simple fact that they are industry experts, are well versed in hard money loans, they know market trends quite well and additionally, they know how to work an auction to purchase their houses at a reasonable deal. However, you are assured that your superb rehab and renovation talents will help you do an outstanding job on this house — additionally, you have already lined up one of the most suggested building contractors in town to handle the job.

But financing is a separate question altogether. A traditional lender, for instance a bank, takes a minimum of 1-2 months to authorize the loan and provide the cash. Considering that the home owners are wanting to find a fast closing, that doesn't seem like a great idea to you whatsoever.

To add to it, banks have been tightening up their lending criteria as of late, which makes it challenging for people to get a typical loan if their credit circumstances are not perfect or he does not have a regular salaried job. So must you stop trying and forego your dream to venture off into real estate? Not at all, especially when 78351 hard money loans enable you to accomplish great things in real estate.

A hard money home loan in 78351 boasts what's possibly most crucial to real estate investors — a fast closing time period of as few as a few weeks. Aside from that, financing can be made up to 70% loan-to-value of the as-is valuation, as established by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be higher priced than bank lending options. But usually, the interest rate isn't as pertinent for these loans, since they will never be long-term loans. The price of such short-term loans ought to be viewed on par with every other expense that you will encounter in the course of the project. Right after you fix up and sell the house, recuperating this expense is no different than recuperating the expense for stainless steel appliances you installed in the place.

Aside from that, hard money mortgages are easy qualifying, whether or not you have poor credit. As an alternative for focusing entirely on the borrower's credit score or wages, 78351 hard money lenders, who could be a privately owned company or an individual person, approve a loan as a result of examining the home value, how easy it will be to market, its location, and the likelihood of recovering their capital in case they have to foreclose the loan. How much an individual can put down beforehand for the property, how much experience he has in real estate investing, and selling price of equivalent properties in the neighborhood are various other factors that go into establishing an applicant's eligibility for a hard money real estate loan.

So if you have found a wonderful fixer-upper with a high potential for returns, you have also found yourself a hard money lender in 78351 who is happy to fund your rehab venture. Complete the form or get in touch with us via phone and let's discuss the project you have in mind.