Imagine you've run across this excellent bargain on a fix and flip property in a great location, and you happen to be either a skilled real estate investor or a first-timer who hopes to try his hand at flipping. Expert home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a gain of $40-$50k on the majority of projects. It goes without saying their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have played an important part in their successes. Having said that, you have likewise been cultivating your rehab and renovation knowledge, have a general contractor ready to go and are certain that you can do a bang up job on this house.

But where precisely do real estate investors get capital? Should you opt for a normal loan via a bank, you will end up waiting somewhere around 1 to 2 months up until the mortgage loan is approved and the funds are available. So if you're expecting a fast closing, it's important for you to recognize that this may cost you a couple of weeks, causing you to miss out on the house.

As well as this, should you have an unfavorable credit situation or do not have a routine income source, it is normally harder to qualify for a bank loan, with the stricter loan requirements banks have put in place as of late. So will inadequate financing prevent you from sticking with your dream? Certainly not, because you always have the 77339 hard money loan alternative.

A hard money home loan in 77339 provides you with what's possibly most sought after by real estate investors — a very fast closing time of as little as 14 days. Furthermore, hard money lenders are able to do lending up to 70% LTV of the home's valuation, as determined by a certified third-party evaluation. With the rates starting around 10%, hard money real estate loans may look, at first, to be higher in price as compared with traditional bank loans. But usually, the lending rate isn't as relevant for these loans, given that they are not long-term loans. The cost of such short-term loans should be evaluated much like any other financial outlay that you would need to meet for the project. When you have sold the house and have made a successful return, you can recoup this expense from the house — very much like recovering the money necessary for the brand-new kitchen appliances that you've put in.

What's more, it is easy to be eligible for a hard money mortgage, even in the event your credit situation is not that impressive. As an alternative for focusing entirely on the borrower's credit score or income, 77339 hard money lenders, who may be a privately owned company or an individual person, say yes to a loan after assessing the home value, its salability, its location, and the odds of getting back their money if they have to foreclose the loan. How much a person can put upfront for the house, how much practical experience he has in real estate investing, and selling price of comparable homes in the vicinity are additional details that go into establishing an applicant's eligibility for a hard money real estate loan.

So if you have found an excellent fixer-upper with a high probability of returns, you've also found yourself a hard money lender in 77339 who's happy to provide financing for your fix and flip projects. Fill out the contact form or get in touch with us via phone to talk about the property or properties you have in mind.