You discovered this outstanding possibility for rehabbing and flipping this wonderful out of date house in a fantastic part of town and it looks like the one you've been looking forward to for quite some time. Expert property flippers, much like the young couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a profit of $40-$50k on the majority of projects. And sure, they are helped in a major way via their professional experience, auction abilities and familiarity with hard money loans. On the other hand, you're assured that your impressive rehab and renovation skills will assist you to do an outstanding job on this house — in addition, you already have lined up one of the best general contractors in the business to work on this job.

But how exactly can real estate investors get financing? If you approach a common lender, such as a bank for a loan, it can take, at a minimum, thirty to sixty days for your acceptance to be completed and your funds to be dispersed. Given that home owners wish to have a fast closing, you might need to begin searching for other financing alternatives.

On top of this, banks have been tightening their lending standards in recent times, rendering it more challenging for someone to receive a conventional loan if their credit situation is not flawless or he doesn't have a regular salaried job. So does that leave you with no option, but to give up your ambition of getting into home flipping? By no means, particularly while hard money loans can help you realize many amazing things in the real estate market.

A hard money home loan in provides you with what's possibly most important to real estate investors — a fast closing time period of as little as two weeks. In addition, the LTV value can reach up to 70% of the property's valuation, as evaluated by a competent appraiser. Some people regard hard money real estate loans to be costlier than customary loans, considering interest rates for such loans commonly start off at 10%. But the lengths of these loans are relatively short, which makes the rate much less significant. As it pertains to short-term loans of several years or less, you should look at them the same as you might for any other expense for your project. And as soon as you have flipped the property or home, recuperating this expense is identical to recovering the expense for the bathroom improvements you performed.

Aside from that, hard money mortgages are easy qualifying, even if you have got bad credit. hard money lenders do not take on a loan exclusively according to the borrower's credit score — instead they also examine the property or home, its value and location, and the property's ability to pay back the financing independent of the person. Several other factors that affect an individual's eligibility for a hard money real estate loan can include how much money he can put towards a down payment, his former experience as a real estate investor, and price of comparative, fairly recently sold homes in the vicinity.

Locating a hard money lender in to finance your fix and flip endeavor is not very hard, as long as the opportunity before you is promising and offers the right prospect for returns. Complete the contact form on this page or give us a call to talk about your property.