Suppose that you've come across this excellent bargain for a fix and flip property located in an ideal neighborhood, and you're either a skilled real estate investor or a newbie who hopes to try out flipping homes. Everyone knows that capable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can turn an average profit margin of $40,000 to $50,000 in their rehab business. And yes, they are helped in a big way by their professional know-how, auction abilities and understanding of hard money loans. However, you're convinced that your superb rehab and renovation abilities can help you do a quality job on this home — furthermore, you've already arranged to have one of the most recommended contractors in the business to handle the job.

But where do you get the necessary funding for flipping? For those who apply for a traditional bank loan, you will wind up waiting around somewhere around 1 to 2 months up until the time the money is authorized and the funds are ready to go. With the sellers looking for a fast closing, that doesn't appear to be a good option to you whatsoever.

To add to it, banks have already been tightening up their lending standards in recent years, which makes it tough for someone to get a regular loan if their credit circumstances are not perfect or he does not have a regular salaried occupation. So does this mean you are without an option, but to abandon your aspiration of getting into rehabbing? By no means, due to the fact you can always go the 78426 hard money loan route to finance your home flipping project.

If you obtain a hard money home loan in 78426, you have access to what's perhaps most important to real estate negotiations throughout the country — a very fast closing of about 14 days. Also, hard money lenders are able to do loans up to 70% LTV of the home value, as assessed by a certified third-party appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as higher in price than bank lending products. But in reality, the interest rate isn't as pertinent for these loans, given that they aren't long-term financing. As it pertains to short-term loans of a few years or less, you should think about them just like you would other expenses for the project. Once you've turned the home and have made a good financial gain, you'll be able to reclaim this expense from the property or home — similar to recouping the cost of brand-new appliances for the kitchen that you put in.

In addition, even a person with bad credit will be able to qualify for a hard money mortgage. As an alternative for focusing exclusively on the person's credit score or net income, 78426 hard money lenders, who could be a private company or an individual, approve a loan after evaluating the property value, its marketability, where it is located, and the odds of getting back their capital in case they have to foreclose the loan. Adding to this, if the borrower have proven experience in similar real estate projects, can put down money for the down payment, and the price of comparable homes in the area works to his benefit, he has an excellent likelihood of being eligible to obtain a hard money real estate loan.

If you happen to have stumbled upon a wonderful fixer-upper with a high probability of returns, you have also found yourself a hard money lender in 78426 who's willing to finance your rehab project. Complete the form on this page or get in touch with us via phone to talk about your project.