Imagine you've run into this really great deal for a fix and flip property you found in a terrific location, and you happen to be either a seasoned real estate investor or a newbie who really wants to try his hand at flipping. Many people know that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, are able to generate an average profit margin of forty to fifty thousand dollars on their flips. Without question, their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have been major factors to their successes. Still, your rehab and renovation knowledge isn't that bad either — besides, you've already identified a suitable building contractor to tackle this home.

But where do real estate investors find funding? If you apply for a normal loan via a bank, you will wind up waiting around roughly 4-8 weeks until eventually the mortgage is authorized and the funds are ready to go. Given that sellers favor a fast closing, it may be advisable to start looking for additional funding options.

With banks establishing more challenging loan standards in recent years, it's become more challenging for a self-employed individual to get a mortgage loan, especially when his credit circumstances are not perfect. So will inadequate funds stop you from sticking to your aspirations? Under no circumstances, particularly while 76530 hard money loans enable you to accomplish many amazing things in the real estate world.

If you decide to opt for a hard money home loan in 76530, you're going to get what's probably most important to real estate negotiations throughout the country — a quick closing of around fourteen days. Besides that, hard money lenders are capable of doing funding up to 70% LTV of the property or home value, as assessed by a credentialed third-party appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank loans. But usually, the rate of interest isn't as pertinent for these loans, given that they are not long-term loans. When it comes to short-term loans of one or two years or even less, you should consider them similar to any other expenditure for the project. Once you've turned the property and have made a positive financial gain, you can get back this expense from the property — similar to recovering the cost of brand-new kitchen appliances that you've put in.

Apart from this, hard money mortgages are easy qualifying, even if you have bad credit. Instead of focusing solely on the borrower's credit score or net income, 76530 hard money lenders, who may be a private company or an individual person, authorize a loan after analyzing the property value, how easy it will be to market, where it is located, and the possibility of recovering their capital in the event of foreclosure. Additional variables that influence an individual's approval for a hard money real estate loan can include how much he is able to put into a down payment, his previous experience as a real estate investor, and selling price of comparative, recently sold properties in the area.

So in the event you run into a very good and profitable flipping opportunity, rest assured you'll have a hard money lender in 76530, equipped to loan you the cash you'll need. Submit the form on this page or call us and let's discuss the property or properties you have in mind.