You discovered this outstanding opportunity to fix and flip this wonderful old property in a good area and it seems like the deal you have been anticipating for quite some time. Expert house flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of $40-$50k on average. Undoubtedly, you also understand that their great results are credited to the simple fact that they are professionals, are well versed in hard money loans, they know the marketplace quite well and they also are good at working a public auction to buy their properties at a good deal. However, you are convinced that your first class rehab and renovation abilities will help you do a superb job for this home — additionally, you already have arranged to have one of the most sought after contractors in town to take care of this job.

But where do you obtain the necessary funding for flipping? If you opt for a normal loan via a bank, you will need to wait approximately 1 to 2 months before the mortgage is approved and your funding is accessible. Thus if you are expecting a fast closing, you need to realize that this may cost you a couple of weeks, making you lose out on the house.

With banks bringing in tougher loan guidelines in the recent past, it is much harder for a self-employed individual to find a home loan, particularly if his credit situation is not optimal. So will inadequate financing prevent you from following your ambitions? Certainly not, due to the fact you can always go the 75250 hard money loan route to pay for your rehab project.

A hard money home loan in 75250 gives you what's regarded as vital to most real estate sales — a very fast closing of only a 2-3 weeks and at many times less. Additionally, loans can be made up to 70% loan-to-value of the "as is" home's valuation, as established by a qualified appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as higher in price than bank financing. But the lengths of these loans tend to be quite shorter, which means the rate is much less important. Short-term loans of several months to a few years are best approached as cost of capital, the same as any other expenditure associated with a project. And when you've turned the property, recovering this expense is the exact same as recuperating the expense for all the kitchen and bath upgrades you did.

Additionally, it's simple to be eligible for a hard money mortgage, even when your credit rating is not that impressive. The customer's credit score will not be the single deciding factor for 75250 hard money lenders — they also consider the house, how much it is worth, where it is located, and its capability to earn back their investment if things should not go as intended. Other criteria that influence a customer's acceptance for a hard money real estate loan can include how much money he is in a position to put towards a down payment, his previous experience as a real estate investor, and price of comparable, recently sold residences in the vicinity.

So in case you have found an excellent fixer-upper with a high probability of returns, you've also stumbled upon a hard money lender in 75250 who's ready to fund your fix and flip project. Complete the contact form or give us a call and let's discuss your property or properties.