An incredible deal on a fix and flip opportunity located in a good area of the city suddenly turns up — sounds too good to be true. Most folks know that capable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can readily make an average profit margin of $40,000 to $50,000 on their home projects. And yes, they are helped in a big way due to their professional know-how, auction skills and understanding of hard money loans. With that being said, you've likewise been cultivating your rehab and remodeling skills, have a very good building contractor arranged and are certain that you can do a bang up job on this home.

But how can you find the necessary capital for home flipping? In the event you get in touch with a regular lending institution, much like a bank for a mortgage loan, it's more than likely going to take, at the very least, 4-8 weeks for your approval to be completed and your money to be furnished. With all the sellers wanting a fast closing, that doesn't seem like a good idea to you at all.

On top of this, banks have already been tightening up their lending criteria in recent times, making it difficult for someone to get a conventional home loan if their credit score is not flawless or he does not have a consistent salaried profession. So should you admit defeat and abandon your desire to get into fix and flips? Certainly not, seeing as you also have the 76066 hard money loan option.

A hard money home loan in 76066 can provide what is deemed essential to most real estate deals — a fast closing of just a couple of weeks and at times even less. Also, hard money lenders will often consent to funding up to 70% LTV of the property or home's valuation, as estimated by a credentialed third-party evaluator. Some people believe hard money real estate loans to be costlier than customary loans, considering lending rates for these loans generally start off at 10%. But the term lengths for these loans tend to be fairly short, making the interest rate far less significant. Short-term loans of several months to a few years are best understood as cost of capital, similar to every other financial outlay involved with a project. And once you've sold the property, recuperating this expense is identical to recuperating the expense for the kitchen and bath improvements you did.

Besides, hard money mortgages are not difficult to qualify for, even when you posses a weak credit score. The customer's credit score isn't the lone deciding factor for 76066 hard money lenders — in addition, they look at the house, how much it is worth, its location, and its ability to earn back their investment if things should not work out as intended. On top of that, if the person can demonstrate prior experience in comparable real estate ventures, can put down cash towards the down payment, and the price of comparable houses in the vicinity works to his benefit, he has got a really good chance of being eligible for a hard money real estate loan.

So should you run into a very good and worthwhile flipping opportunity, relax knowing you'll have a hard money lender in 76066, able to lend you the funds you will need. Submit the contact form or call us to discuss the property or properties you have in mind.