There is this outstanding possibility for fixing and flipping this wonderful old property in a fantastic area and it seems a lot like the one you have been eagerly waiting on for quite some time. You may have heard that competent house flippers, similar to the married couple on HGTV's Flip or Flop, turn a remarkable average return of around $40,000 – $50,000. Undoubtedly, you also understand that their results can be attributed to the simple fact that they're experts, are proficient in hard money loans, they understand the marketplace quite well and in addition, they are good at working a public auction to purchase their homes at an appropriate deal. On the other hand, you're certain that your first class rehab and renovation knowledge will help you do an outstanding job on this home — furthermore, you already have arranged to have one of the premier building contractors in town to take care of the project.

But how can you obtain the necessary financing for flipping? When you meet with a regular lender, like a bank for a mortgage loan, it's in all likelihood going to take, as a minimum, 30-60 days for the approval to be completed and your funds to be furnished. So if you're hoping for a fast closing, you need to recognize that this will cost you a couple of weeks, making you miss out on the home.

To add to it, banks have already been tightening their lending criteria in recent years, rendering it more challenging for someone to get a traditional loan if their credit score is not flawless or he does not have a consistent salaried profession. So should you admit defeat and abandon your ambition to embark into real estate? By no means, considering that you could always use the hard money loan approach to pay for your home renovating project.

A hard money home loan in gives you what is viewed as imperative to most real estate sales — a quick closing of just a couple of weeks and more often than not less. Furthermore, hard money lenders frequently agree to lending up to 70% LTV of the property value, as calculated by a certified third-party evaluator. Some people believe hard money real estate loans to be more expensive than standard financing, considering lending rates for these loans typically start out at 10%. But if you understand these loans are not long-term home loans, the rate can be misleading. Short-term loans of several months to a few years are best thought of as cost of capital, similar to any other expense involved with a project. And once you've turned the house, recuperating this expense is the exact same as recuperating the expense for all the bathroom or other upgrades you did.

Furthermore, even someone with low credit will be able to qualify for a hard money mortgage. As an alternative for focusing primarily on the borrower's credit score or income, hard money lenders, who may be a private company or an individual, approve a loan as a result of examining the property value, its marketability, where it is located, and the possibility of recovering their capital in case of foreclosure. How much an individual can put down beforehand towards the property or home, how much experience he has in real estate investing, and selling price of comparable homes in the area are additional details that go into analyzing a person's eligibility for a hard money real estate loan.

Finding a hard money lender in to finance your renovation project is not difficult, assuming that the opportunity that lies ahead of you is promising and boasts the right potential for returns. Fill out the form on this page or give us a call to discuss your project.