Suppose that you've encountered this really great bargain for a fix and flip property you found in a great location, and you're either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Many people know that knowledgeable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can readily earn a typical profit margin of $40,000 to $50,000 on their home projects. It's fair to say their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have had an important part in their results. Having said that, you have recently been developing your rehab and remodeling knowledge, have a building contractor lined up and are certain that you will be able to do a great job for this home.

But where can you get the necessary funding for home flipping? A standard lender, for instance a bank, takes at a minimum one to two months to approve the mortgage and provide the monies. Because most sellers wish to have a fast closing, it may be best to start looking for other financing options.

With banks establishing more challenging loan standards in the past several years, it is now much harder for a self-employed individual to get a mortgage loan, particularly if his credit circumstances are not flawless. So will a shortage of financing stop you from pursuing your dream? By no means, especially when Aurora hard money loans can help you achieve many amazing things in real estate.

When you opt for a hard money home loan in Aurora, you're going to get what is perhaps most essential to real estate negotiations across the country — a very fast closing of about a couple weeks. Further, loans can be made up to 70% loan-to-value of the "as is" home's valuation, as calculated by a licensed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be more pricey than bank lending products. But the lengths of these loans are much shorter, making the rate much less important. The price tag on such short-term loans should be evaluated on par with any other cost that you would encounter in the course of the project. Right after you renovate and resell the house, recuperating this expense is no different than recouping the expense for stainless steel appliances you put in the home.

Also, it's simple to be eligible for a hard money mortgage, even when your credit score is not that superb. Aurora hard money lenders don't take on a loan exclusively based on the borrower's credit score — instead they also look at the property or home, where it is located and what it is worth, and the property's ability to pay back the financing independent of the borrower. Several other variables that impact an applicant's acceptance for a hard money real estate loan can include what amount of money he is able to put into a down payment, his previous experience as a real estate investor, and price of comparable, just recently sold properties in the vicinity.

So should you come across a good and profitable flipping opportunity, relax knowing you will have a hard money lender in Aurora, in a position to lend you the cash you need. Enter your info into the contact form on this page or give us a call to discuss your property.