An outstanding buy on a fix and flip property located in a good subdivision shows up out of the blue — seems too good to be true. Expert home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a profit of $40-$50k on average. And yes, they are helped in a big way via their professional experience, auction expertise and familiarity with hard money loans. On the other hand, you're convinced that your superb rehab and renovation skills will help you do a great job on the home — in addition, you already have lined up one of the most recommended general contractors in the area to take care of the project.

But money is usually a separate problem entirely. A traditional lender, for instance a bank, takes a minimum of one to two months to authorize the financing and release the cash. Since most home owners give preference to a fast closing, you may want to begin seeking out other funding alternatives.

What's more, should you have a less-than-perfect credit situation or do not receive a consistent income source, it is normally more difficult to obtain a bank loan, with the stricter loan requirements banks have introduced as of late. So will a lack of funds keep you from sticking to your aspirations? Not at all, especially when 78577 hard money loans can help you accomplish great things in real estate.

A hard money home loan in 78577 boasts what's probably most crucial to real estate investors — a very fast closing time period of as few as fourteen days. What's more, the LTV value can go up to 70% of the home's valuation, as estimated by a certified appraiser. With the rates starting off at about 10%, hard money real estate loans might seem, initially, to be higher priced as compared with conventional bank loans. But the term lengths for these loans tend to be relatively shorter, which means the interest rate is less important. The price of such short-term loans ought to be evaluated on par with any other financial outlay that you would have to meet for the project. Once you have sold the property and have made a successful gain, you'll be able to reclaim this expense from the property — much like recuperating the money necessary for the brand-new appliances for the kitchen that you have installed.

What's more, it is simple to qualify for a hard money mortgage, even when your credit situation is not that superb. 78577 hard money lenders don't authorize a loan exclusively on the basis of the borrower's credit score — instead they will analyze the property, where it is located and how much it is worth, and the home's capability to pay back the financing by itself. On top of that, if the person have proven experience in similar real estate ventures, can put down money towards the down payment, and the value of comparable properties in the area works in his favor, he has a very good shot of being approved to obtain a hard money real estate loan.

Finding a hard money lender in 78577 to help with expenses for your renovation project is not very challenging, provided that the opportunity before you is promising and possesses a good potential for returns. Fill out the contact form or call us to discuss the property you have in mind.