Imagine you've run across this really great bargain for a fix and flip property located in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who is looking to try his hand at flipping. Most folks know that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, are able to generate a typical profit of forty to fifty thousand dollars on their home projects. And indeed, they are aided in a big way via their professional knowledge, auction abilities and understanding of hard money loans. Still, your rehab and renovation skills aren't that bad either — in any case, you've already found an ideal contractor to tackle this home.

But how exactly do real estate investors get funds? Should you apply for a regular loan via a bank, you will need to wait roughly 1 to 2 months up until the money is approved and the money is ready. So if you will be looking for a fast closing, it's important for you to understand or know that this may set you back by a few weeks, causing you to lose out on the house.

To add to it, banks have been tightening their lending criteria in recent times, which makes it challenging for someone to obtain a traditional home loan if their credit score is not perfect or he doesn't have a regular salaried job. So will a shortage of funds prevent you from pursuing your dream? Never, on the grounds that you could always go the hard money loan route to pay for your flipping project.

A hard money home loan in offers what is viewed as essential to many real estate deals — a very fast closing of just a few weeks and oftentimes less. Also, hard money lenders can do lending up to 70% LTV of the property value, as identified by a certified third-party evaluator. With rates starting off near 10%, hard money real estate loans may look, at first glance, to be more pricey as compared with conventional bank loans. But in reality, the rate of interest is not as useful a measure for these loans, since they aren't long-term loans. Short-term loans of a couple months to a handful of years are best looked at in terms of cost of capital, similar to any other financial outlay in connection with a project. And once you've finally turned the property, recuperating this expense is identical to recouping the expense for all the bathroom or other upgrades you performed.

Aside from that, hard money mortgages are easy qualifying, even in the event you have below-average credit. The person's credit score isn't the single determining factor for hard money lenders — in addition, they analyze the home, its market value, its location, and its capacity to earn back their financial commitment if things should not work out as intended. How much an individual can put down in advance for the property or home, his real estate experience, and selling price of comparative homes in the same area are various other factors that go into establishing an applicant's eligibility for a hard money real estate loan.

If you happen to have stumbled on a wonderful real estate opportunity with a huge chance of returns, you've also discovered a hard money lender in who's ready to provide financing for your flipping projects. Fill out the form on this page or give us a call and let's discuss your property or properties.