There is this amazing possibility for fixing and flipping this wonderful outdated home in a very good part of town and it seems a lot like the deal you have been expecting for a long time. Professional house flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a gain of forty to fifty grand on average. Of course, you also are aware that their great results can be attributed to the simple fact that they're experts, are well versed in hard money loans, they understand market trends really well and they also know how to work an auction to buy their properties at an appropriate deal. On the other hand, you are assured that your impressive rehab and remodeling knowledge will enable you to do a superb job on the property — what's more, you already have lined up one of the premier contractors in the business to handle the project.

But financing can be a separate problem altogether. A conventional lending institution, say for example a bank, takes a minimum of 1 to 2 months to consent to the loan and hand over the funds. Thus if you happen to be hoping for a fast closing, you have to recognize that this may cost you a few weeks, causing you to lose out on the sale.

With banks bringing in harder loan guidelines in the last few years, it's become much harder for a self-employed individual to find a mortgage loan, especially when his credit rating is not optimal. So does this mean you have no option, but to drop your ambition to venture into rehabbing? Under no circumstances, particularly when 77518 hard money loans enable you to realize many amazing things in real estate.

If you decide to apply for a hard money home loan in 77518, you have access to what's perhaps most vital to real estate purchases across the country — a very fast closing of approximately two weeks. In addition, the LTV value can go up to 70% of the home value, as estimated by a certified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank lending options. But the term lengths for these loans are much shorter, making the rate far less important. The price tag on such short-term loans ought to be looked at on par with every other expenditure that you will encounter in the course of the project. After you remodel and sell off the property, recovering this expense is just like recuperating the money you spent for new kitchen appliances you put in the place.

Moreover, even a person with low credit can easily be eligible for a hard money mortgage. The borrower's credit score isn't the exclusive deciding factor for 77518 hard money lenders — in addition, they examine the piece of real estate, its market value, its location, and its ability to return their investment if things do not work out as planned. How much money an individual can put down in advance for the home, how much practical experience he has in real estate investing, and price range of comparable homes in the same area are other factors that go into analyzing a borrower's suitability for a hard money real estate loan.

If you happen to have stumbled upon a really great real estate opportunity with a high potential for returns, you have also discovered a hard money lender in 77518 that's happy to provide financing for your rehab venture. Enter your info into the form on this page or get in touch with us via phone and let's talk about your project.