Suppose you've come across this really great bargain for a fix and flip property you found in a terrific neighborhood, and you are either a skilled real estate investor or a newbie who hopes to try his hand at flipping. Professional home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping series, are able to haul in a profit of $40-$50k for the majority of homes. It's fair to say their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have had a significant role in their successes. However, you're assured that your superb rehab and remodeling knowledge can help you do an outstanding job on this property — furthermore, you have already arranged to have one of the best general contractors in the business to work on the project.

But financing can be a different issue altogether. A typical lender, like for example a bank, takes a minimum of 1 to 2 months to approve the loan and hand over the money. Due to the fact all the sellers are wanting to find a fast closing, that doesn't appear to be a great idea to you at all.

With banks adding tougher loan criteria in the recent past, it has become much harder for a self-employed individual to obtain a home loan, especially when his credit circumstances are not optimal. So does that leave you with no option, but to drop your aspiration of getting into the fix and flip business? Certainly not, given that you also have the 77224 hard money loan option.

A hard money home loan in 77224 gives you what's perhaps most crucial to real estate investors — a very fast closing time period of as few as a few weeks. Additionally, loan amounts are made up to 70% loan-to-value of the as-is home's valuation, as established by a professional appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more pricey than bank loans. But when you appreciate that these loans are not long-term home loans, the interest rate can be misleading. Short-term loans of a couple months to a few years are best understood in terms of cost of capital, very much like all other expenditures related to a project. And as soon as you have sold the property or home, recouping this expense is the exact same as recuperating the expense for the kitchen and bath upgrades you did.

Aside from that, hard money mortgages are not difficult to qualify for, whether or not you have a low credit rating. The person's credit score is not the primary determining factor for 77224 hard money lenders — in addition, they look at the home, what is it valued at, its location, and its ability to bring back their financial commitment if everything does not work out as intended. The total amount that an applicant can put down in advance for the home, his real estate experience, and price range of equivalent properties in the vicinity are various other details that go into analyzing an applicant's eligibility for a hard money real estate loan.

Finding a hard money lender in 77224 to cover expenses for your real estate project is not difficult, as long as the opportunity before you is promising and offers a strong potential for returns. Enter your info into the contact form or call us to discuss the property or properties you have in mind.