A fantastic bargain on a fix and flip property in a very good area of the city all of a sudden shows up — seems so good that it's difficult to believe. Expert house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of earning a gain of $40-$50k on a regular basis. Undoubtedly, you also understand that their success can be attributed to the fact that they are experts, are knowledgeable in hard money loans, they know the market really well and in addition, they know how to work an auction for getting a reasonable price. On the other hand, you're convinced that your superb rehab and renovation knowledge will enable you to do a great job on the home — additionally, you have already arranged to have one of the best contractors in the area to take on this project.

But funding is usually a separate problem entirely. In the event you go after a regular loan via a bank, you will have to wait roughly 30-60 days until the financing is approved and the funds are ready to go. Because most home owners would prefer a fast closing, you might need to begin looking for some other funding alternatives.

Moreover, if you have a less-than-perfect credit situation or do not have a routine income, it is normally harder for you to be eligible for a bank financing, considering the tighter loan guidelines banks have issued lately. So will a lack of financing prevent you from sticking to your ambitions? Certainly not, due to the fact you could always use the 78703 hard money loan approach to finance your home flipping project.

A hard money home loan in 78703 offers what is regarded as essential to many real estate deals — a very fast closing of just a 2-3 weeks and oftentimes even less. In addition, the LTV value can reach up to 70% of the home's valuation, as evaluated by a credentialed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as higher priced than bank lending products. But if you consider these are not long-term home loans, the rate may be misleading. Short-term loans of several months to a few years are best thought of as cost of capital, the same as all other expenditures associated with a project. When you have turned the house and have made a positive gain, you'll be able to recover this expense from the property or home — similar to recuperating the money necessary for the brand-new appliances for the kitchen that you have installed.

Aside from that, hard money mortgages are easy qualifying, regardless if you have got a weak credit score. As an alternative for focusing strictly on the borrower's credit score or source of income, 78703 hard money lenders, who could be a private company or an individual, authorize a loan after assessing the home value, its marketability, its location, and the odds of recovering their capital in the event of foreclosure. Other criteria that affect an individual's eligibility for a hard money real estate loan can include how much he is in a position to put towards a down payment, his prior experience as a real estate investor, and price range of similar, fairly recently sold residences in the area.

So if you have found a wonderful fixer-upper with a significant chance of returns, you have also stumbled upon a hard money lender in 78703 that is willing to finance your rehab project. Submit the contact form on this page or call us and let's talk about the property or properties you have in mind.