An outstanding bargain on a fix and flip opportunity located in a nice neighborhood shows up out of the blue — seems too good to be true. Expert residential home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to haul in a gain of forty to fifty grand on most projects. And sure, they are helped in a big way via their professional know-how, auction expertise and familiarity with hard money loans. However, you're certain that your superb rehab and remodeling talents will help you do an outstanding job on the property — in addition, you already have arranged to have one of the best building contractors in the business to handle this project.

But capital is usually a different problem entirely. If you get in touch with a regular lender, such as a bank for a mortgage loan, it's likely going to take a minimum of 4-8 weeks for your acceptance to be completed and your money to be distributed. So if you're hoping for a fast closing, you need to understand that this will set you back by weeks, making you miss out on the sale.

With banks bringing in tougher loan guidelines in the past several years, it's become harder for a self-employed individual to get a home loan, especially if his credit situation is not flawless. So does that leave you with no option, but to abandon your dream to venture into rehabbing? Definitely not, seeing as you always have the 78414 hard money loan alternative.

A hard money home loan in 78414 promises what's perhaps most essential to real estate investors — a very fast closing time period of as little as fourteen days. Further, loan amounts can be done for up to 70% loan-to-value of the "as is" home value, as deemed by a qualified appraiser. With lending rates starting out near 10%, hard money real estate loans may appear, initially, to be higher in price when compared with traditional bank financing. But the lengths of these loans are rather short, making the interest rate much less important. Short-term loans of a couple months to a handful of years are best thought of as cost of capital, the same as every other expense involved with a project. Right after you fix up and unload the home, recovering this expense is just like recovering the cost of the stainless steel appliances you put in the place.

What's more, it's easy to be eligible for a hard money mortgage, even in the event your credit rating is not that impressive. 78414 hard money lenders do not authorize a loan strictly on the basis of the customer's credit score — rather they additionally evaluate the property or home, its location and value, and the home's ability to pay back the loan without the assistance of the borrower. Several other variables that influence a borrower's approval for a hard money real estate loan include how much he is in a position to put towards a down payment, his prior experience being a real estate investor, and selling price of similar, recently sold residences in the neighborhood.

So in the event you come across an outstanding and lucrative flipping opportunity, relax knowing you will have a hard money lender in 78414, equipped to lend you the money you will need. Fill out the form or give us a call to discuss the project you have in mind.