Suppose you've come across this truly good deal for a fix and flip property located in an ideal neighborhood, and you happen to be either a skilled real estate investor or a first-timer who hopes to try his hand at flipping. You may have heard that veteran house flippers, much like the husband and wife on HGTV's Flip or Flop, have an impressive average profit margin near forty to fifty thousand dollars. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction skills have played a significant role in their results. Still, your rehab and remodeling knowledge isn't that bad either — in any case, you've already found the right building contractor to take on the job.

But where can you find the necessary capital for flipping? In the event you get in touch with a regular lending institution, like a bank for a mortgage loan, it very likely will take, at the very least, 30-60 days for the acceptance to be completed and your money to be furnished. Thus if you are hoping for a fast closing, you have to recognize that this may cost you a couple of weeks, causing you to lose out on the home.

On top of this, banks have already been tightening up their lending requirements in recent times, rendering it more hard for people to get a typical loan if their credit circumstances are not flawless or he does not possess a regular salaried occupation. So will a lack of financing stop you from pursuing your aspirations? Absolutely not, given that you also have the 78562 hard money loan option.

A hard money home loan in 78562 gives you what's perhaps most desired by real estate investors — a fast closing time of as few as fourteen days. Additionally, loan amounts are made up to 70% loan-to-value of the as-is valuation, as determined by a professional appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank lending products. But once you understand these loans are not long-term loans, the rate of interest may be misleading. Short-term loans of a couple months to a handful of years are best thought of in terms of cost of capital, the same as every other expense related to a project. After you rehab and sell the home, recovering this expense is just like recovering the expense for new kitchen appliances you put in the house.

Besides, hard money mortgages are not difficult to qualify for, even when you have got below-average credit. The customer's credit score is not the single determining factor for 78562 hard money lenders — they also consider the house, its market valuation, where it is located, and its potential to return their investment if everything does not work out as intended. The total amount that an individual can put down in advance for the property or home, his past real estate experience, and price range of equivalent properties in the same neighborhood are other factors that go into establishing an applicant's eligibility for a hard money real estate loan.

So should you come across a very good and worthwhile investment opportunity, feel comfortable knowing you will have a hard money lender in 78562, able to lend you the funds you need. Enter your info into the form or give us a call to discuss your property.