Imagine you've stumbled upon this excellent bargain on a fix and flip property in a great location, and you happen to be either an experienced real estate investor or a first-timer who really wants to try his hand at flipping. Many people know that capable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, are able to generate a typical profit margin of $40,000 to $50,000 when they rehab properties. Of course, you also know that their great results are credited to the fact that they are industry experts, are well versed in hard money loans, they know market trends quite well and they also know how to work an auction to purchase their properties at a reasonable price. Nonetheless, your rehab and renovation skills aren't bad either — besides, you have already found an ideal contractor to handle the project.

But money can be a different issue entirely. A standard lending institution, say for example a bank, takes at the very least 1 to 2 months to consent to the loan and hand over the cash. Considering that the home owners are seeking a fast closing, that doesn't seem like a wise idea to you at all.

On top of this, banks have been tightening up their lending criteria as of late, rendering it more challenging for a person to receive a conventional home loan if their credit score is not perfect or he does not have a regular salaried job. So must you stop trying and abandon your ambition to venture into the real estate market? Most certainly not, seeing as you always have the 75243 hard money loan alternative.

A hard money home loan in 75243 provides what is possibly most important to real estate investors — a very fast closing in as little as 14 days. Besides that, hard money lenders frequently agree to lending up to 70% LTV of the property's valuation, as calculated by a licensed third-party evaluation. Some people believe hard money real estate loans to be more pricey than ordinary loans, considering lending rates for these loans often start off at 10%. But the term lengths for these loans are comparatively shorter, which means the rate is much less significant. As it pertains to short-term loans of several years or less, you should think about them much like you would other expenses for the project. And as soon as you have sold the property or home, recouping this expense is identical to recuperating the expense for all the bathroom or other improvements you performed.

Moreover, even someone with low credit will be able to qualify for a hard money mortgage. Rather than focusing strictly on the applicant's credit score or net income, 75243 hard money lenders, who could be a privately owned company or an individual, say yes to a loan after assessing the home value, how easy it will be to market, where it is located, and the probability of recouping their money in case they have to foreclose the loan. Adding to that, if the borrower have proven experience in similar real estate projects, can put down money for the down payment, and the price of comparative houses in the neighborhood works to his benefit, he stands a very good likelihood of being eligible to obtain a hard money real estate loan.

Locating a hard money lender in 75243 to help with expenses for your fix and flip endeavor is not hard, as long as the opportunity that lies before you is promising and offers the right potential for returns. Fill out the contact form or give us a call and let's discuss your property.