There's this phenomenal possibility for renovating and flipping this nice outdated property or home in a fantastic part of town and it seems a lot like the one you've been eagerly waiting on for a long time. A majority of people know that skilled professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, can turn an average profit of $40,000 to $50,000 on their home projects. Undoubtedly, you also realize that their great results are attributed to the simple fact that they're experts, are knowledgeable in hard money loans, they understand the marketplace quite well and additionally, they are good at working an auction to buy their houses at a good price. Nonetheless, your rehab and renovation skills aren't bad either — aside from that, you've already found the right general contractor to take on the project.

But money is often a different problem entirely. For those who opt for a normal bank loan, you will need to wait around roughly 1-2 months before the loan is authorized and the funding is ready to go. Since most sellers give preference to a fast closing, you might need to start seeking out some other financing options.

Furthermore, if you have a sub-optimal credit score or don't receive a regular income source, it is usually more difficult to obtain a bank loan, with the tougher loan requirements banks have introduced recently. So will a lack of funds prevent you from following your ambitions? By no means, because you could always use the Pearland hard money loan approach to pay for your flipping project.

A hard money home loan in Pearland provides you with what is possibly most important to real estate investors — a fast closing in as few as a few weeks. Aside from that, loans can be done for up to 70% loan-to-value of the "as is" property's valuation, as calculated by a licensed appraiser. With the rates starting out near 10%, hard money real estate loans may appear, at first, to be higher priced in comparison with conventional bank financing. But usually, the interest rate isn't as relevant for these loans, simply because they are not long-term loans. As it pertains to short-term loans of a handful of years or even less, you should think of them just like you would other expenses for the project. After you remodel and sell the home, recuperating this expense is the same as recuperating the one for stainless steel appliances you placed into the property.

What's more, it is simple to qualify for a hard money mortgage, even in the event your credit rating is not that great. Instead of focusing entirely on the borrower's credit score or wages, Pearland hard money lenders, who can be a private company or an individual person, authorize a loan as a result of examining the property value, ease of marketability, its location, and the likelihood of recuperating their capital in case of foreclosure. On top of this, if the borrower can demonstrate past experience in comparable real estate ventures, can put down money for the down payment, and the cost of equivalent homes in the neighborhood works in his favor, he stands an excellent chance of being eligible to obtain a hard money real estate loan.

So if you have found a wonderful real estate opportunity with a huge potential for returns, you've also stumbled upon a hard money lender in Pearland who is happy to finance your fix and flip venture. Submit the form or call us to talk about the project you have in mind.