There's this phenomenal possibility for renovating and flipping this nice old condo in a good location and it looks a lot like the one you've been wanting for quite a while. Expert residential home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of $40-$50k on the majority of projects. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction skills have had a big role in their success. With that being said, you have also been brushing up your rehab and renovation skills, have a very good building contractor ready for the project and are confident that you're capable of doing a great job on this home.

But how do you find the necessary capital for home flipping? In the event you opt for a regular bank loan, you will wind up waiting around somewhere around 1-2 months up until the time the mortgage loan is authorized and the funding is ready to go. So if you will be looking for a fast closing, you have to realize that this could cost you a couple of weeks, causing you to lose out on the home.

With banks establishing harder loan criteria in the past several years, it's become tougher for a self-employed person to obtain a mortgage loan, especially if his credit circumstances are not perfect. So should you stop trying and abandon your dream to venture off into fix and flips? Certainly not, considering that you can always use the 79945 hard money loan approach to pay for your home renovating project.

A hard money home loan in 79945 provides you with what's probably most desired by real estate investors — a very fast closing in as few as 2 weeks. In addition, the LTV value can go up to 70% of the home value, as evaluated by a competent appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be costlier than bank loans. But the term lengths for these loans tend to be relatively shorter, which means the interest rate is far less significant. The cost of such short-term loans ought to be evaluated much like every other expense that you would have to meet pertaining to the project. Once you've resold the house and have made a positive return, you can get back this expense from the property or home — just like recouping the cost of brand-new appliances for the kitchen that you have put in.

Also, it's easy to qualify for a hard money mortgage, regardless of whether your credit rating is not that great. 79945 hard money lenders do not authorize a loan exclusively according to the borrower's credit score — instead they will assess the property or home, its value and location, and the home's capability to pay back the financing on its own. Several other factors that have an impact on a customer's acceptance for a hard money real estate loan include how much he is in a position to put towards a down payment, his former experience being a real estate investor, and price range of similar, just recently sold homes in the vicinity.

Finding a hard money lender in 79945 to cover expenses for your flipping business is not very challenging, assuming that the opportunity that lies before you is promising and boasts the right potential for returns. Submit the contact form or call us to talk about your property or properties.