Imagine you've stumbled upon this excellent deal for a fix and flip property located in a great location, and you're either an experienced real estate investor or a first-timer who is looking to try out flipping homes. Everybody knows that capable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, can make an average profit of $40,000 to $50,000 when they flip properties. Naturally, you also recognize that their great results are attributed to the fact that they're industry experts, are knowledgeable in hard money loans, they know the market quite well and additionally, they are good at working a public auction for getting a good deal. Still, your rehab and remodeling knowledge isn't that bad either — aside from that, you've already identified a good general contractor to handle this project.

But where precisely can real estate investors obtain financing? When you get in touch with a regular lender, like a bank for a loan, it very likely will take, at the very least, four to eight weeks for your acceptance to come through and the money to be given out. So if you're hoping for a fast closing, it's important to recognize that this may set you back by a couple weeks, making you miss out on the sale.

Moreover, for those who have an unfavorable credit rating or don't have a conventional source of income, it is normally tougher for you to obtain a bank loan, considering the more stringent loan criteria banks have introduced in recent times. So does that mean you have no option, but to drop your dream to venture into home renovating? Never, on the grounds that you could always use the 78602 hard money loan approach to pay for your home renovating project.

A hard money home loan in 78602 gives you what is regarded as imperative to most real estate deals — a quick closing of only a couple of weeks and oftentimes less. Plus, the LTV value can reach up to 70% of the property value, as estimated by a credentialed appraiser. With interest rates starting around 10%, hard money real estate loans may look, at first, to be more expensive in comparison with conventional bank financing. But if you appreciate that these are not long-term loans, the rate of interest tends to be misleading. As it pertains to short-term loans of several years or less, you should consider them the same as you might for any other expenditure for your project. When you have turned the property or home and have made a good return, you'll be able to recover this expense from the property — just like recouping the cost of brand-new appliances for the kitchen that you installed.

Apart from this, hard money mortgages are easy qualifying, whether or not you have got very bad credit. 78602 hard money lenders don't approve a loan exclusively on the basis of the customer's credit score — rather they will evaluate the property or home, its value and location, and the home's ability to pay back the loan independent of the borrower. Other criteria that affect a person's approval for a hard money real estate loan can include the amount he is in a position to put towards a down payment, his prior experience being a real estate investor, and price range of comparable, fairly recently sold residences in the area.

Finding a hard money lender in 78602 to help with expenses for your real estate project is not hard, as long as the opportunity that lies before you is promising and has a strong potential for returns. Complete the contact form or give us a call to discuss the property you have in mind.