Imagine you've run across this really great deal for a fix and flip property located in a terrific location, and you're either an experienced real estate investor or a first-timer who really wants to try out flipping houses. You've probably heard that veteran home flippers, such as the couple on HGTV's Flip or Flop, have a remarkable average return close to $40,000 – $50,000. Naturally, you also understand that their results are due to the simple fact that they are professionals, are well versed in hard money loans, they know the marketplace really well and additionally, they are good at working a public auction for getting an appropriate price. With that being said, you've likewise been brushing up your rehab and renovation skills, have got a general contractor lined up and are positive that you will be able to do a stellar job on this home.

But money is a separate problem altogether. When you get in touch with a common lending institution, like a bank for funding, it is more than likely going to take, at a minimum, four to eight weeks for the acceptance to be completed and the funds to be dispersed. Due to the fact the home owners are looking for a fast closing, that doesn't seem like a good option to you in the slightest.

Furthermore, for those who have a sub-optimal credit situation or do not receive a consistent income, it is normally more difficult for you to be eligible for a bank loan, considering the tighter loan criteria banks have introduced in recent times. So do you have to give up and forego your ambition to venture off into the real estate market? Never, because you can always use the 79849 hard money loan approach to finance your home flipping project.

A hard money home loan in 79849 offers what's regarded as imperative to many real estate deals — a quick closing of only a few weeks and at times less. Plus, the LTV value can go up to 70% of the home value, as estimated by a competent appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank lending options. But when you understand these are not long-term loans, the rate of interest tends to be misleading. When it comes to short-term loans of one or two years or less, you should look at them just like you would other expenditures for the project. Once you have resold the house and have made a good return, you can get back this expense from the house — just like recovering the money spent on the brand-new kitchen appliances that you put in.

Furthermore, even a person with weak credit can easily be eligible for a hard money mortgage. 79849 hard money lenders do not approve a loan solely on the basis of the person's credit score — instead they additionally analyze the property or home, its value and location, and the home's capacity to pay back the loan independent of the person. Several other criteria that influence a borrower'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 previous experience as a real estate investor, and selling price of similar, recently sold residences in the vicinity.

Locating a hard money lender in 79849 to help with expenses for your real estate project is not very hard, assuming that the opportunity in front of you is promising and boasts a strong prospect for returns. Fill out the contact form or get in touch with us via phone to discuss the property or properties you have in mind.