Suppose you've encountered this truly good bargain 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 really wants to try his hand at flipping. You may have heard that veteran property flippers, like the married couple on HGTV's Flip or Flop, enjoy an impressive average return close to $40,000 – $50,000. Of course, you also realize that their great results are attributed to the simple fact that they are professionals, are well versed in hard money loans, they understand market trends really well and furthermore, they know how to work an auction for getting an appropriate deal. That said, you have also been developing your rehab and renovation skills, have a licensed contractor lined up and are confident that you're capable of doing a great job for this home.

But where precisely do real estate investors obtain funds? When you get in touch with a regular lender, like a bank for a mortgage loan, it's likely going to take, as a minimum, thirty to sixty days for the approval to come through and your funds to be distributed. Since most sellers would rather have a fast closing, you might want to begin looking for some other financing alternatives.

To add to it, banks have been tightening their lending requirements in recent years, which makes it tough for someone to obtain a typical loan if their credit rating is not flawless or he doesn't have a consistent salaried occupation. So should you give up and forego your ambition to venture into fix and flips? Certainly not, seeing as you also have the Ovilla hard money loan alternative.

A hard money home loan in Ovilla boasts what is possibly most crucial to real estate investors — a very fast closing time period of as few as a few weeks. Furthermore, hard money lenders are able to do lending up to 70% LTV of the home's valuation, as calculated by a qualified third-party evaluator. With interest rates starting off around 10%, hard money real estate loans might appear, initially, to be more expensive in comparison with conventional bank loans. But the term lengths for these loans tend to be comparatively short, making the rate less important. Short-term loans of a couple of months to a handful of years are best looked at as cost of capital, similar to any other expense associated with a project. Once you've sold the property or home and have made a successful return, you're able to recoup this expense from the home — much like recovering the money necessary for the brand-new kitchen appliances that you put in.

Besides, hard money mortgages are not difficult to qualify for, regardless if you have got very bad credit. The applicant's credit score isn't the sole deciding factor for Ovilla hard money lenders — in addition, they consider the piece of real estate, how much it is worth, where it is located, and its capability to earn back their financial commitment if things do not go as planned. On top of that, if the applicant can demonstrate past experience in comparable real estate ventures, can place down cash for a down payment, and the price of equivalent homes in the neighborhood works to his benefit, he has got a really good shot of qualifying to obtain a hard money real estate loan.

If you happen to have found a really good home to flip with a high prospect of returns, you have also found yourself a hard money lender in Ovilla who's ready to provide financing for your fix and flip venture. Enter your info into the contact form on this page or give us a call and let's talk about the property you have in mind.