An incredible bargain on a fix and flip property in a good area of the city all of a sudden shows up — sounds too good to be true. Expert home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a profit of $40-$50k on average. Of course, you also know that their great results are attributed to the fact that they are professionals, are knowledgeable in hard money loans, they know market trends really well and in addition, they know how to work an auction for getting a reasonable price. That said, you have recently been brushing up your rehab and remodeling skills, have got a building contractor ready to go and are certain that you will be able to do a bang up job on this house.

But funding is a separate question altogether. Should you approach a customary lending institution, much like a bank for funding, it in all likelihood will take no less than 4-8 weeks for your approval to be completed and your funds to be sent out. Given that sellers wish to have a fast closing, you might need to begin searching for additional funding options.

With banks adding more challenging loan criteria in the last few years, it's become much harder for a self-employed person to get a home loan, especially if his credit circumstances are not perfect. So should you give up and forego your desire to get into the real estate market? Under no circumstances, especially when hard money loans enable you to realize many amazing things in the real estate world.

A hard money home loan in gives you what is possibly most important to real estate investors — a very fast closing time of as few as 14 days. Also, hard money lenders are capable of doing lending up to 70% LTV of the home value, as estimated by a credentialed third-party evaluator. Some individuals regard hard money real estate loans to be more pricey than standard loans, considering interest rates for these loans often start at 10%. But when you consider these loans are not long-term loans, the rate of interest may be misleading. As it pertains to short-term loans of one or two years or even less, you should think of them the same as you would for any other expense for your project. When you have sold the home and have made a positive financial gain, you're able to recover this expense from the home — similar to recuperating the money spent on the brand-new home appliances that you've installed.

What's more, it isn't difficult to obtain a hard money mortgage, regardless of whether your credit situation is not that superb. Instead of focusing primarily on the borrower's credit score or income, hard money lenders, who may be a private company or an individual person, authorize a loan as a result of assessing the home value, how easy it will be to market, where it is located, and the odds of recouping their capital if they have to foreclose the loan. Additional criteria that have an impact on a person's approval for a hard money real estate loan can include how much he can put towards a down payment, his prior experience as a real estate investor, and price range of similar, just recently sold properties in the area.

Locating a hard money lender in to fund your real estate project is not very hard, assuming that the opportunity that lies before you is promising and possesses a strong prospect for returns. Submit the form or get in touch with us via phone to talk about the property you have in mind.