Suppose you've come across this excellent deal for a fix and flip property you found in a terrific neighborhood, and you are either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. Everybody knows that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, are able to generate a typical profit margin of $40,000 to $50,000 in their rehab business. Without question, their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have had a big part in their successes. Having said that, you've recently been cultivating your rehab and remodeling knowledge, have a building contractor ready to go and are confident that you will be able to do a bang up job for this house.

But where can you obtain the needed financing for flipping? When you meet with a regular lending institution, such as a bank for a loan, it more than likely will take no less than 4-8 weeks for the approval to come through and the funds to be accessible. With the home owners seeking a fast closing, that doesn't appear like a great idea to you whatsoever.

As well as this, should you have an unfavorable credit score or don't have a consistent income, it may be harder to be eligible for a a bank loan, seeing the more stringent loan criteria banks have issued recently. So will a shortage of funding prevent you from pursuing your dream? Most certainly not, seeing as you always have the Mansfield hard money loan alternative.

A hard money home loan in Mansfield provides what's probably most crucial to real estate investors — a very fast closing time period of as little as 14 days. Additionally, financing can be done for up to 70% loan-to-value of the "as is" house value, as calculated by a qualified appraiser. Some people consider hard money real estate loans to be more costly than ordinary loans, considering lending rates for such loans typically start out at 10%. But the lengths of these loans are comparatively short, which means the rate is much less important. When it comes to short-term loans of 1 or 2 years or less, you should consider them much like you would other expenses for your project. After you renovate and sell the home, recuperating this expense is just like recouping the expense for home appliances you installed in the place.

What's more, it is easy to qualify for a hard money mortgage, regardless of whether your credit score is not that great. Instead of focusing solely on the applicant's credit score or net income, Mansfield hard money lenders, who may be a privately owned company or an individual person, say yes to a loan as a result of assessing the home value, how easy it will be to market, where it is located, and the possibility of recuperating their money in the event of foreclosure. Adding to this, if the person can demonstrate prior experience in similar real estate endeavors, can place down cash for a down payment, and the value of similar properties in the area works to his benefit, he has got a good shot of being eligible to get a hard money real estate loan.

So if you have stumbled on an excellent fixer-upper with a high probability of returns, you've also stumbled upon a hard money lender in Mansfield that's happy to provide financing for your fix and flip venture. Submit the contact form or call us and let's talk about the property or properties you have in mind.