Suppose you've come across this really great bargain on a fix and flip property located in an ideal location, and you're either a seasoned real estate investor or a newbie who wants to try out flipping homes. You've probably heard that veteran house flippers, similar to the married couple on HGTV's Flip or Flop, enjoy an impressive average profit close to $40,000 – $50,000. No need to explain that their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction skills have had an important part in their successes. However, you are assured that your first class rehab and remodeling abilities can help you do a great job on this home — in addition, you already have lined up one of the most recommended general contractors in the business to take on the project.

But how can real estate investors get financing? Should you meet with a regular lending institution, much like a bank for a mortgage loan, it's very likely going to take no less than 30-60 days for the acceptance to come through and your funds to be accessible. Considering that all the home owners want a fast closing, that doesn't seem like a great idea to you whatsoever.

To add to it, banks have already been tightening up their lending standards as of late, making it tough for someone to get a conventional loan if their credit situation is not perfect or he doesn't have a consistent salaried job. So should you give up and abandon your dream to venture off into the real estate market? Under no circumstances, particularly when 78575 hard money loans will assist you to achieve many amazing things in real estate.

A hard money home loan in 78575 offers what is regarded as essential to many real estate transactions — a very fast closing of only a couple of weeks and at many times even less. Besides that, hard money lenders frequently agree to lending up to 70% LTV of the home's valuation, as assessed by a credentialed third-party appraiser. Some individuals believe hard money real estate loans to be more expensive than customary financing, since the lending rates for these loans usually start out at 10%. But the term lengths for these loans tend to be relatively shorter, making the rate less significant. As it pertains to short-term loans of a few years or less, you should think about them much like you would other expenses for the project. Right after you remodel and sell the house, recouping this expense is the same as recuperating the money you spent for stainless steel appliances you placed into the house.

What's more, it isn't difficult to obtain a hard money mortgage, even when your credit score is not that impressive. 78575 hard money lenders do not take on a loan solely judging by the customer's credit score — instead they also look at the property or home, its location and value, and the home's ability to pay back the loan by itself. How much an applicant can put down in advance towards the house, how much experience he has in real estate investing, and selling price of comparative homes in the neighborhood are other details that go into establishing a borrower's eligibility for a hard money real estate loan.

Locating a hard money lender in 78575 to fund your flipping business is not very challenging, so long as the opportunity that lies before you is promising and possesses the right potential for returns. Submit the form on this page or give us a call to talk about your project.