A remarkable buy on a fix and flip opportunity in an excellent area of the city suddenly shows up — seems too good to be true. A majority of people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can earn a typical profit margin of $40,000 to $50,000 on their home projects. Naturally, you also understand that their great results are attributed to the simple fact that they're professionals, are proficient in hard money loans, they know market trends really well and additionally, they are good at working a public auction for getting a reasonable deal. That said, you have likewise been developing your rehab and remodeling skills, have a contractor arranged and are certain that you're capable of doing an impressive job on this home.

But where can real estate investors obtain funding? In the event you go after a normal bank loan, you will wind up waiting around somewhere around 30-60 days up until the time the money is authorized and your money is ready. With the sellers looking for a fast closing, that doesn't appear to be a wise idea to you whatsoever.

To add to it, banks have been tightening their lending criteria as of late, which makes it tough for someone to obtain an ordinary loan if their credit situation is not perfect or he does not have a regular salaried job. So does that mean you have no option, but to drop your dream of getting into home renovating? By no means, particularly while 78207 hard money loans will assist you to achieve many amazing things in the real estate world.

When you get a hard money home loan in 78207, you will get what's possibly most important to real estate transactions across the country — a quick closing of around 14 days. Additionally, loan amounts can be made up to 70% loan-to-value of the "as is" value, as established by a licensed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be more pricey than bank lending products. But once you understand these loans are not long-term home loans, the rate tends to be misleading. The cost of such short-term loans should be viewed on par with any other expenditure that you would encounter in the course of the project. After you fix up and unload the house, recuperating this expense is no different than recuperating the money you spent for stainless steel appliances you installed in the home.

Moreover, even individuals with bad credit can easily qualify for a hard money mortgage. Rather than focusing entirely on the person's credit score or net income, 78207 hard money lenders, who can be a privately owned company or an individual, approve a loan as a result of analyzing the home value, how easy it will be to market, where it is located, and the probability of recuperating their money in case of foreclosure. Several other factors that have an impact on a borrower's acceptance for a hard money real estate loan include how much money he is in a position to put towards a down payment, his prior experience as a real estate investor, and price of similar, just recently sold homes in the area.

So in case you have stumbled on a really great fixer-upper with a significant potential for returns, you've also found yourself a hard money lender in 78207 that's happy to finance your rehab ventures. Fill out the contact form on this page or call us and let's discuss your project.