A fantastic buy on a fix and flip opportunity located in a very good area of the city all of a sudden shows up — seems so good that it's hard to believe. Many people know that skilled professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, are able to make a typical profit margin of forty to fifty thousand dollars on their flips. Of course, you also understand that their results are credited to the simple fact that they're experts, are proficient in hard money loans, they understand the marketplace really well and furthermore, they are good at working an auction to purchase their homes at an appropriate deal. On the other hand, you're certain that your first class rehab and renovation talents will assist you to do an outstanding job on this house — in addition, you've already lined up one of the premier contractors in the business to take on this job.

But money can be a different issue altogether. For those who meet with a common lending institution, such as a bank for a mortgage loan, it is very likely going to take, at the very least, 4-8 weeks for the approval to be completed and the money to be distributed. Thus if you are anticipating a fast closing, it is important to realize that this could cost you a couple of weeks, causing you to lose out on the home.

With banks bringing in tougher loan standards in the past few years, it's become much harder for a self-employed individual to find a mortgage loan, especially if his credit situation is not optimal. So does this leave you with no other option, but to drop your dream to venture into the fix and flip business? Definitely not, given that you also have the 78650 hard money loan option.

Should you obtain a hard money home loan in 78650, you'll get what is perhaps most vital to real estate transactions across the country — a fast closing of roughly two weeks. Also, hard money lenders will often consent to loans up to 70% LTV of the home's valuation, as established by a credentialed third-party evaluator. With the interest rates starting near 10%, hard money real estate loans may look, initially, to be higher priced when compared with traditional bank lending products. But the term lengths for these loans are comparatively short, which means the rate is less significant. As it pertains to short-term loans of a handful of years or less, you should think about them identical to any sort of other expense for the project. Once you have turned the house and have made a positive return, you can recover this expense from the property — similar to recouping the cost of brand-new home appliances that you put in.

Besides, hard money mortgages are easy qualifying, even if you posses less-than-perfect credit. Rather than focusing solely on the borrower's credit score or source of income, 78650 hard money lenders, who could be a private company or an individual, say yes to a loan as a result of assessing the home value, ease of marketability, where it is located, and the possibility of recovering their money in the event of foreclosure. The total amount that an individual can put upfront towards the home, how much experience he has in real estate investing, and price range of comparative homes in the same area are additional factors that go into determining a person's eligibility for a hard money real estate loan.

So in case you have stumbled upon an excellent fixer-upper with a high prospect of returns, you have also found yourself a hard money lender in 78650 that is prepared to provide financing for your flipping ventures. Complete the form on this page or call us and let's talk about the project you have in mind.