There is this phenomenal possibility for rehabbing and flipping this nice old condo in a fantastic area and it seems a lot like the deal you have been looking forward to for quite a while. Professional property flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping show, are capable of earning a gain of forty to fifty grand on average. And without a doubt, they are helped in a big way as a result of their professional knowledge, auction expertise and knowledge of hard money loans. On the other hand, you are convinced that your first class rehab and remodeling knowledge will assist you to do a great job on the home — in addition, you already have lined up one of the best contractors in the area to take on this job.

But how exactly do real estate investors find money? In the event you get in touch with a customary lending institution, like a bank for financing, it's very likely going to take no less than 30-60 days for the approval to come through and the money to be distributed. Since the majority of sellers give preference to a fast closing, it may be best to begin searching for additional financing options.

With banks adding tougher loan standards in the past several years, it has become more challenging for a self-employed person to obtain a mortgage loan, particularly if his credit score is not optimal. So should you give up and forego your ambition to embark into fix and flips? Certainly not, given that you also have the hard money loan alternative.

A hard money home loan in offers what is viewed as imperative to most real estate sales — a very fast closing of just a few weeks and at many times even less. What's more, the LTV value can go up to 70% of the property value, as estimated by a credentialed appraiser. With interest rates starting out near 10%, hard money real estate loans may appear, at first, to be more costly in comparison with traditional bank loans. But when you consider these are not long-term home loans, the interest rate may be misleading. As it pertains to short-term loans of one or two years or less, you should consider them just like you would other expenditures for the project. After you renovate and sell off the house, recouping this expense is the same as recovering the cost of the new kitchen appliances you put in the property.

Furthermore, even an individual with weak credit will be able to qualify for a hard money mortgage. hard money lenders do not take on a loan solely on the basis of the borrower's credit score — instead they will examine the property, its value and location, and the property's ability to pay back the financing on its own. Other factors that have an impact on an individual's approval for a hard money real estate loan can include what amount of money he is able to put towards a down payment, his prior experience as a real estate investor, and price range of comparative, recently sold homes in the area.

So in case you have stumbled on an excellent fixer-upper with a huge potential for returns, you've also found yourself a hard money lender in that's willing to finance your fix and flip projects. Complete the contact form on this page or call us and let's talk about your property.