A remarkable buy on a fix and flip property in a good area of the city shows up out of the blue — seems too good to be true. Everyone knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can turn an average profit margin of forty to fifty thousand dollars on their home projects. It's fair to say their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction skills have been large factors to their successes. Still, your rehab and renovation knowledge isn't that bad either — in any case, you have already located an ideal building contractor to tackle the home.

But capital is usually a different issue entirely. A standard lender, for instance a bank, takes a minimum of one to two months to consent to the loan and hand over the cash. So if you're hoping for a fast closing, it is important you realize that this will set you back by weeks, causing you to lose out on the home.

With banks establishing tougher loan criteria in the recent past, it is more challenging for a self-employed person to find a home loan, especially when his credit rating is not flawless. So should you admit defeat and forego your ambition to embark into fix and flips? By no means, on the grounds that you can always use the 78209 hard money loan approach to fund your flipping project.

A hard money home loan in 78209 boasts what is perhaps most essential to real estate investors — a quick closing in as little as a few weeks. And additionally, loan amounts can be done for up to 70% loan-to-value of the "as is" home's valuation, as calculated by a licensed appraiser. Some individuals believe hard money real estate loans to be higher in price than regular loans, because the lending rates for these loans ordinarily start out at 10%. But in reality, the interest rate is not as useful a measure for these loans, because they aren't long-term financing. Short-term loans of a couple of months to a few years are best understood in terms of cost of capital, much like all other expenditures in connection with a project. And when you've sold the property, recouping this expense is identical to recuperating the expense for the kitchen and bath improvements you performed.

Besides, hard money mortgages are easy qualifying, whether or not you have got bad credit. As an alternative for focusing strictly on the applicant's credit score or income, 78209 hard money lenders, who could be a private company or an individual, authorize a loan as a result of assessing the property value, its marketability, where it is located, and the possibility of getting back their capital in the event of foreclosure. On top of this, if the person can demonstrate prior experience in equivalent real estate ventures, can place down money for the down payment, and the value of similar houses in the vicinity works in his favor, he stands a really good chance of qualifying to obtain a hard money real estate loan.

If you happen to have stumbled on a wonderful fixer-upper with a huge potential for returns, you have also discovered a hard money lender in 78209 that's happy to provide funding for your flipping ventures. Submit the contact form on this page or get in touch with us via phone to discuss the property or properties you have in mind.