A remarkable deal on a fix and flip opportunity located in an excellent area of the city shows up out of the blue — sounds too good to be true. Everyone knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, are able to make a typical profit of $40,000 to $50,000 in their rehab business. And indeed, they are aided in a big way via their professional experience, auction skills and understanding of hard money loans. With that being said, you have likewise been brushing up your rehab and remodeling knowledge, have a licensed contractor lined up and are certain that you're capable of doing an impressive job for this house.

But money is a different problem altogether. A typical lender, like for example a bank, takes at least 1-2 months to authorize the financing and provide the monies. So if you will be looking for a fast closing, you must be aware that this may cost you a couple weeks, causing you to lose out on the opportunity.

On top of this, banks have been tightening their lending requirements in recent times, which makes it hard for a person to receive a conventional loan if their credit score is not flawless or he does not possess a consistent salaried profession. So does that leave you with no other option, but to abandon your aspiration of venturing into home flipping? Under no circumstances, particularly when 79901 hard money loans can help you realize great things in real estate.

A hard money home loan in 79901 provides what is considered crucial to many real estate deals — a fast closing of only a 2-3 weeks and at times even less. Besides that, hard money lenders can do lending up to 70% LTV of the home value, as calculated by a certified third-party appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be costlier than bank loans. But when you consider these are not long-term home loans, the interest rate tends to be misleading. The cost of such short-term loans should be considered much like every other expense that you will have to meet for the project. And as soon as you've finally turned the property, recovering this expense is comparable to recouping the expense for the bathroom or other upgrades you performed.

Aside from that, hard money mortgages are easy qualifying, even if you have got poor credit. 79901 hard money lenders don't authorize a loan exclusively judging by the person's credit score — instead they additionally examine the property, its location and value, and the home's capability to pay back the financing without the help of the applicant. On top of this, if the borrower can demonstrate prior experience in similar real estate ventures, can place down money towards the down payment, and the value of similar homes in the vicinity works to his benefit, he has got an excellent chance of qualifying to get a hard money real estate loan.

If you happen to have stumbled upon a really good real estate opportunity with a huge prospect of returns, you've also found yourself a hard money lender in 79901 who is happy to provide funding for your fix and flip projects. Enter your info into the form or give us a call and let's discuss your property.