A fantastic buy on a fix and flip opportunity located in an excellent neighborhood shows up out of the blue — seems so good that it is hard to believe. Expert residential home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to earn a gain of $40-$50k as an average on multiple occasions. Of course, you also realize that their successes can be credited to the simple fact that they're experts, are knowledgeable in hard money loans, they understand market trends quite well and they also know how to work a public auction for getting a good deal. However, you are convinced that your impressive rehab and renovation abilities will help you do a superb job on the project — what's more, you already have arranged to have one of the best building contractors in town to take care of this job.

But how exactly do real estate investors find capital? A traditional lending institution, for instance a bank, takes at a minimum one to two months to consent to the financing and hand over the monies. With the home owners seeking a fast closing, that doesn't appear to be a good option to you whatsoever.

On top of this, banks have been tightening their lending standards as of late, making it challenging for people to receive a regular home loan if their credit rating is not flawless or he does not possess a consistent salaried profession. So does this mean you have no option, but to give up your ambition to venture into rehabbing? Never, because you can always use the hard money loan approach to fund your rehab project.

A hard money home loan in provides what's perhaps most important to real estate investors — a fast closing time of as little as 2 weeks. What's more, the LTV value can reach up to 70% of the property value, as estimated by a certified appraiser. Some people consider hard money real estate loans to be more pricey than ordinary loans, since the lending rates for such loans usually start out at 10%. But the term lengths for these loans tend to be rather short, making the rate less important. Short-term loans of a couple of months to a handful of years are best understood in terms of cost of capital, the same as every other financial outlay in connection with a project. Once you've turned the home and have made a positive return, you can recoup this expense from the property or home — similar to recuperating the money spent on the brand-new appliances for the kitchen that you installed.

Moreover, even an individual with low credit will be able to be eligible for a hard money mortgage. As an alternative for focusing entirely on the person's credit score or net income, hard money lenders, who can be a privately owned company or an individual, authorize a loan as a result of examining the property value, ease of marketability, where it is located, and the odds of getting back their money if they have to foreclose the loan. On top of this, if the person have proven experience in similar real estate projects, can put down cash for a down payment, and the price of equivalent houses in the neighborhood works to his benefit, he has a really good chance of qualifying to get a hard money real estate loan.

So in the event you run into a good and profitable investment opportunity, feel comfortable knowing you will have a hard money lender in , ready to loan you the cash you will need. Submit the form or get in touch with us via phone to talk about the property you have in mind.