Suppose that you've come across this really great bargain 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 hopes to try out flipping houses. You may have heard that veteran property flippers, similar to the couple on HGTV's Flip or Flop, turn an impressive average return close to forty to fifty thousand dollars. It's fair to say their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have been large factors to their results. Nonetheless, your rehab and renovation skills aren't bad either — aside from that, you've already located an ideal building contractor to tackle this project.

But how exactly do real estate investors find money? If you opt for a normal loan via a bank, you will need to wait around roughly 30-60 days until the mortgage loan is approved and your money is ready to go. So if you're expecting a fast closing, you must understand that this may cost you a couple of weeks, causing you to lose out on the home.

To add to it, banks have been tightening their lending standards as of late, making it hard for people to obtain a traditional home loan if their credit rating is not flawless or he does not have a consistent salaried job. So do you have to stop trying and forego your aspiration to venture off into fix and flips? By no means, particularly when Lytle hard money loans can help you achieve great things in the real estate market.

If you should obtain a hard money home loan in Lytle, you're going to get what's perhaps most important to real estate transactions across the country — a fast closing of around 14 days. Additionally, loan amounts can be made up to 70% loan-to-value of the as-is home's valuation, as deemed by a qualified appraiser. A number of people believe hard money real estate loans to be higher in price than regular financing, considering interest rates for these loans commonly start at 10%. But once you consider these are not long-term home loans, the rate of interest may be misleading. Short-term loans of several months to a few years are best looked at in terms of cost of capital, much like all other expenses related to a project. After you rehab and sell the property, recouping this expense is just like recovering the money you spent for new kitchen appliances you installed in the property.

Also, it's easy to be eligible for a a hard money mortgage, regardless if your credit rating is not that impressive. The person's credit score isn't the single determining factor for Lytle hard money lenders — additionally, they evaluate the piece of real estate, what is it valued at, where it is located, and its capability to earn back their investment if things do not work out as planned. How much money a person can put down beforehand towards the property, how much practical experience he has in real estate investing, and selling price of comparable properties in the neighborhood are other factors that go into ascertaining a person's eligibility for a hard money real estate loan.

So any time you run into a good and profitable flipping opportunity, rest assured you'll have a hard money lender in Lytle, willing to lend you the capital that you need. Enter your info into the contact form on this page or give us a call and let's talk about your property or properties.