Suppose that you've encountered this really great deal for a fix and flip property located in an ideal location, and you're either a seasoned real estate investor or a newbie who wants to try his hand at flipping. You may have heard that professional home flippers, like the couple on HGTV's Flip or Flop, turn a remarkable average return of around $40,000 – $50,000. Of course, you also know that their successes can be credited to the simple fact that they are professionals, are knowledgeable in hard money loans, they understand market trends really well and they also are good at working a public auction to buy their properties at an appropriate price. With that being said, you have also been brushing up your rehab and renovation skills, have a very good contractor arranged and are confident that you will be able to do a stellar job for this property.

But financing is a separate issue entirely. When you go after a normal loan via a bank, you will have to wait roughly one to two months until eventually the money is approved and the funds are accessible. Since most sellers give preference to a fast closing, you might have to start seeking out some other funding alternatives.

With banks adding harder loan standards in the last few years, it is much harder for a self-employed person to get a mortgage loan, especially if his credit situation is not optimal. So should you give up and forego your desire to venture off into the real estate market? Absolutely not, because you also have the 79942 hard money loan option.

A hard money home loan in 79942 gives you what is regarded as crucial to many real estate transactions — a quick closing of just a 2-3 weeks and more often than not even less. Aside from that, loan amounts can be done for up to 70% loan-to-value of the "as is" house value, as determined by a qualified appraiser. With loan rates starting off around 10%, hard money real estate loans might appear, at first, to be more costly compared to conventional bank financing. But if you appreciate that these loans are not long-term loans, the rate may be misleading. The price of such short-term loans ought to be looked at on par with every other expense that you will have to meet for the project. Right after you renovate and resell the property, recovering this expense is just like recuperating the money you spent for new kitchen appliances you installed in the property.

Aside from that, hard money mortgages are easy qualifying, even if you have got very bad credit. As an alternative for focusing exclusively on the borrower's credit score or wages, 79942 hard money lenders, who can be a privately owned company or an individual person, say yes to a loan after examining the property value, how easy it will be to market, where it is located, and the possibility of recouping their money should they have to foreclose the loan. On top of that, if the borrower have proven experience in comparable real estate projects, can place down cash towards the down payment, and the cost of comparable homes in the vicinity works to his benefit, he stands a good chance of qualifying to obtain a hard money real estate loan.

So should you run into a really good and worthwhile investment opportunity, be assured you will have a hard money lender in 79942, in a position to loan you the cash you will need. Enter your info into the form or give us a call to discuss the property or properties you have in mind.