You discovered this outstanding opportunity to renovate and flip this wonderful outdated property or home in a very good area and it seems a lot like the deal you have been anticipating for a long time. Professional house flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of forty to fifty grand on a regular basis. No need to explain that their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction talents have had a significant role in their successes. Having said that, you've recently been brushing up your rehab and remodeling knowledge, have a building contractor arranged and are certain that you will be able to do a great job for this property.

But where do real estate investors obtain money? For those who approach a customary lending institution, such as a bank for a loan, it is in all likelihood going to take, at a minimum, four to eight weeks for the approval to be completed and your funds to be sent out. Thus if you are expecting a fast closing, it's important for you to understand that this could cost you a couple weeks, causing you to lose out on the opportunity.

On top of this, banks have already been tightening up their lending criteria as of late, which makes it hard for a person to get a traditional loan if their credit circumstances are not perfect or he does not possess a regular salaried occupation. So do you have to stop trying and abandon your ambition to embark into fix and flips? Not at all, particularly when hard money loans enable you to accomplish many amazing things in the real estate market.

If you should put in an application for a hard money home loan in , you're going to get what is possibly most essential to real estate transactions across the country — a quick closing of around 14 days. Also, hard money lenders are able to do funding up to 70% LTV of the property value, as established by a licensed third-party evaluator. A number of people believe hard money real estate loans to be higher in price than regular financing, since the lending rates for these loans normally start off at 10%. But the time frames of these loans tend to be comparatively shorter, which means the rate is less important. As it pertains to short-term loans of 1 or 2 years or even less, you should think of them just like you would other expenditures for your project. And once you've sold the house, recuperating this expense is identical to recuperating the expense for the bathroom or other upgrades you performed.

In addition, even a person with weak credit can still be eligible for a hard money mortgage. Instead of focusing primarily on the applicant's credit score or source of income, hard money lenders, who can be a privately owned company or an individual, authorize a loan as a result of analyzing the property value, its marketability, where it is located, and the probability of getting back their money in the event of foreclosure. How much a person can put down in advance towards the property, how much practical experience he has in real estate investing, and selling price of comparable properties in the same area are additional factors that go into establishing an applicant's qualification for a hard money real estate loan.

So in case you have stumbled upon a really great fixer-upper with a significant probability of returns, you have also found yourself a hard money lender in who is happy to provide funding for your fix and flip projects. Enter your info into the contact form on this page or get in touch with us via phone to discuss the project you have in mind.