An outstanding deal on a fix and flip property located in an excellent area of the city shows up out of the blue — sounds too good to be true. Most folks know that skilled professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, are able to generate an average profit of forty to fifty thousand dollars in their rehab business. It's fair to say their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction talents have played a significant role in their results. That said, you have also been brushing up your rehab and renovation knowledge, have a very good general contractor lined up and are certain that you're capable of doing a great job for this property.

But how do you obtain the needed capital for home flipping? A standard lending institution, like for example a bank, takes at a minimum one to two months to consent to the financing and provide the funds. So if you will be hoping for a fast closing, it's important to understand that this will cost you a few weeks, making you miss out on the house.

What's more, for those who have an unfavorable credit situation or don't receive a conventional income source, it is normally tougher for you to be eligible for a a bank loan, considering the tighter loan requirements banks have issued of late. So does this leave you with no option, but to abandon your aspiration to venture into home flipping? Certainly not, due to the fact you can always use the 75030 hard money loan approach to pay for your rehab project.

A hard money home loan in 75030 provides you with what is possibly most crucial to real estate investors — a quick closing time period of as few as 14 days. And additionally, loan amounts can be made up to 70% loan-to-value of the "as is" house's valuation, as deemed by a licensed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank loans. But the term lengths for these loans are relatively short, which means the rate is much less important. Short-term loans of a couple of months to a few years are best understood in terms of cost of capital, very much like all other expenses related to a project. And once you have sold the home, recovering this expense is identical to recouping the expense for all the bathroom or other updates you performed.

Moreover, even someone with weak credit will be able to be eligible for a hard money mortgage. The applicant's credit score is not the sole deciding factor for 75030 hard money lenders — additionally, they examine the home, its market value, where it is located, and its capacity to bring back their investment if everything does not work out as planned. The total amount that an individual can put down in advance for the property, his real estate experience, and selling price of comparative properties in the same area are additional details that go into determining an applicant's eligibility for a hard money real estate loan.

So in the event you come across a good and lucrative investment opportunity, feel comfortable knowing you'll have a hard money lender in 75030, prepared to lend you the money you will need. Fill out the contact form on this page or give us a call to talk about your project.