Suppose you've come across this really great deal for a fix and flip property located in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who really wants to try out flipping houses. You may have heard that professional house flippers, such as the couple on HGTV's Flip or Flop, turn a remarkable average profit margin close to $40,000 – $50,000. And yes, they are aided in a big way due to their professional knowledge, auction skills and understanding of hard money loans. Having said that, you've also been developing your rehab and renovation skills, have a contractor ready to go and are positive that you're capable of doing a stellar job for this house.

But capital is a separate issue entirely. In the event you get in touch with a standard lender, such as a bank for a mortgage loan, it's more than likely going to take a minimum of four to eight weeks for your approval to come through and the funds to be accessible. Since most home owners would rather have a fast closing, you might need to begin seeking out additional financing options.

On top of this, banks have already been tightening up their lending standards in recent years, rendering it more hard for someone to receive a traditional home loan if their credit circumstances are not perfect or he doesn't have a consistent salaried occupation. So does that mean you have no option, but to drop your aspiration of venturing into home renovating? By no means, due to the fact you can always go the 77441 hard money loan route to finance your flipping project.

A hard money home loan in 77441 boasts what's perhaps most essential to real estate investors — a quick closing time of as little as two weeks. Further, loan amounts are made up to 70% loan-to-value of the as-is home value, as established by a qualified appraiser. With interest rates starting off at about 10%, hard money real estate loans may appear, initially, to be higher in price when compared with traditional bank loans. But the lengths of these loans are fairly short, making the interest rate much less significant. The price tag on such short-term loans should be evaluated much like any other cost that you will have to meet for the project. Once you've resold the house and have made a good return, you're able to recoup this expense from the property or home — very much like recouping the cost of brand-new kitchen appliances that you put in.

What's more, it's easy to be eligible for a a hard money mortgage, even in the event your credit rating is not that impressive. Instead of focusing primarily on the borrower's credit score or source of income, 77441 hard money lenders, who can be a privately owned company or an individual, approve a loan after analyzing the home value, its marketability, where it is located, and the odds of recuperating their capital in case of foreclosure. The total amount that a person can put upfront towards the home, his real estate experience, and price range of comparative homes in the same neighborhood are other details that go into analyzing a person's qualification for a hard money real estate loan.

So in the event you run into a very good and lucrative investment opportunity, be assured you'll have a hard money lender in 77441, willing to lend you the cash you will need. Fill out the contact form on this page or get in touch with us via phone to discuss the property or properties you have in mind.