You discovered this amazing opportunity to renovate and flip this nice old home in a good part of town and it seems a lot like the deal you've been wanting for quite a while. Most folks know that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can readily make an average profit margin of forty to fifty thousand dollars when they flip properties. Of course, you also recognize that their results are attributed to the simple fact that they are professionals, are knowledgeable in hard money loans, they know the marketplace quite well and in addition, they are good at working an auction to buy their houses at an appropriate price. Having said that, you have recently been cultivating your rehab and renovation knowledge, have a very good building contractor ready for the project and are positive that you will be able to do a great job on this property.

But where precisely can real estate investors find funding? A conventional lender, for instance a bank, takes a minimum of one to two months to consent to the mortgage and hand over the funds. So if you're hoping for a fast closing, it is important you be aware that this may set you back by a couple of weeks, causing you to miss out on the opportunity.

On top of this, banks have been tightening their lending requirements in recent times, making it hard for people to receive a conventional loan if their credit rating is not perfect or he does not have a regular salaried occupation. So must you give up and forego your ambition to venture into the real estate market? Absolutely not, given that you also have the hard money loan option.

A hard money home loan in offers what is considered vital to most real estate deals — a quick closing of just a 2-3 weeks and at many times less. Further, loans can be made up to 70% loan-to-value of the "as is" valuation, as calculated by a qualified appraiser. With interest rates starting out near 10%, hard money real estate loans might appear, initially, to be higher in price when compared with traditional bank financing. But the lengths of these loans tend to be quite short, which means the rate is much less important. As it pertains to short-term loans of a few years or even less, you should think about them identical to any sort of other expenditure for the project. And as soon as you've finally turned the property, recovering this expense is comparable to recouping the expense for the kitchen and bath updates you did.

Besides, hard money mortgages are not difficult to qualify for, even in the event you posses bad credit. The applicant's credit score will not be the lone determining factor for hard money lenders — they also analyze the house, its market value, where it is located, and its capacity to earn back their financial commitment if things do not work out as intended. How much an applicant can put down in advance for the house, his real estate experience, and price range of comparable homes in the neighborhood are other factors that go into ascertaining an individual's suitability for a hard money real estate loan.

Searching for a hard money lender in to finance your flipping business is not hard, so long as the opportunity that lies ahead of you is promising and boasts a good potential for returns. Complete the contact form on this page or call us to discuss your property.