Imagine you've encountered this really great deal on a fix and flip property you found in a terrific neighborhood, and you're either a skilled real estate investor or a newbie who hopes to try out flipping houses. You've heard that professional home flippers, similar to the couple on HGTV's Flip or Flop, enjoy an impressive average profit margin close to forty to fifty thousand dollars. And indeed, they are helped in a major way due to their professional knowledge, auction abilities and understanding of hard money loans. However, you're certain that your impressive rehab and remodeling abilities will enable you to do a quality job for this project — additionally, you've already arranged to have one of the best contractors in the business to take care of this job.

But where do real estate investors obtain capital? If you apply for a regular loan from the bank, you will have to wait roughly 30-60 days until the loan is approved and your funds are accessible. Because most sellers would rather have a fast closing, you might need to begin seeking out some other funding options.

With banks introducing more challenging loan guidelines in the past few years, it has become harder for a self-employed person to obtain a mortgage loan, particularly if his credit rating is not optimal. So will inadequate financing keep you from sticking to your ambitions? Definitely not, seeing as you also have the 78203 hard money loan alternative.

When you opt for a hard money home loan in 78203, you have access to what is probably most essential to real estate purchases across the country — a very fast closing of approximately two weeks. Additionally, loans can be made up to 70% loan-to-value of the "as is" home value, as established by a qualified appraiser. With the lending rates starting out near 10%, hard money real estate loans might appear, initially, to be more expensive as compared with conventional bank loans. But when you consider these are not long-term mortgage loans, the interest rate can be misleading. As it pertains to short-term loans of a few years or even less, you should consider them similar to any sort of other expense for your project. Right after you fix up and sell off the home, recovering this expense is the same as recouping the expense for stainless steel appliances you put in the place.

Apart from this, hard money mortgages are not difficult to qualify for, even in the event you posses poor credit. 78203 hard money lenders do not authorize a loan exclusively judging by the borrower's credit score — instead they will analyze the property, its location and value, and the home's capacity to pay back the loan on its own. Other factors that affect an individual's eligibility for a hard money real estate loan include how much money he is able to put into a down payment, his past experience being a real estate investor, and selling price of comparative, just recently sold properties nearby.

Searching for a hard money lender in 78203 to fund your flipping business is not hard, so long as the opportunity that lies before you is promising and has a strong potential for returns. Enter your info into the contact form or get in touch with us via phone to discuss your property.