Imagine you've encountered this excellent deal for a fix and flip property located in an ideal location, and you happen to be either a skilled real estate investor or a first-timer who hopes to try out flipping homes. Many people know that capable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, can generate an average profit margin of forty to fifty thousand dollars on their home projects. Of course, you also recognize that their great results can be attributed to the fact that they're professionals, are knowledgeable in hard money loans, they know the market quite well and in addition, they are good at working an auction for getting a good deal. Nonetheless, your rehab and renovation knowledge isn't that bad either — besides, you have already found a suitable licensed contractor to take on this home.

But capital is usually a different question altogether. A typical lending institution, say for example a bank, takes at a minimum 1-2 months to consent to the mortgage and deliver the capital. With the sellers seeking a fast closing, that doesn't appear like a good option to you whatsoever.

To add to it, banks have been tightening their lending requirements in recent years, which makes it challenging for people to receive an ordinary loan if their credit circumstances are not perfect or he does not have a regular salaried job. So does that mean you have no option, but to abandon your ambition of venturing into home flipping? Under no circumstances, particularly while 88542 hard money loans can help you realize many amazing things in the real estate world.

A hard money home loan in 88542 promises what is possibly most essential to real estate investors — a fast closing time of as little as 2 weeks. And additionally, loan amounts can be done for up to 70% loan-to-value of the "as is" house's valuation, as deemed by a licensed appraiser. With lending rates starting near 10%, hard money real estate loans may look, initially, to be more expensive when compared with conventional bank lending products. But the lengths of these loans are comparatively short, making the rate much less significant. The price tag on such short-term loans ought to be looked at on par with any other cost that you would need to meet for the project. Right after you remodel and resell the house, recuperating this expense is no different than recouping the expense for stainless steel appliances you put in the place.

Apart from this, hard money mortgages are not difficult to qualify for, whether or not you have got poor credit. 88542 hard money lenders do not take on a loan strictly on the basis of the applicant's credit score — instead they will assess the home, its valuation and location, and the property's capacity to pay back the loan without the assistance of the person. Several other criteria that affect an applicant's acceptance for a hard money real estate loan include how much he is able to put into a down payment, his former experience as a real estate investor, and price of comparative, fairly recently sold residences in the vicinity.

Finding a hard money lender in 88542 to finance your real estate project is not very hard, provided that the opportunity that lies ahead of you is promising and possesses a strong potential for returns. Submit the contact form or call us and let's discuss your project.