An incredible deal on a fix and flip opportunity in an excellent area of the city suddenly shows up — seems too good to be true. Professional house flippers, much like the young couple on Flip or Flop, HGTV's reality flipping show, are able to earn a profit of forty to fifty grand on average. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction talents have been large factors to their successes. Nevertheless, you're convinced that your superb rehab and remodeling knowledge can help you do a superb job on the project — additionally, you already have arranged to have one of the finest general contractors in town to take care of the project.

But how do real estate investors find financing? When you get in touch with a regular lending institution, much like a bank for financing, it's very likely going to take at least thirty to sixty days for the approval to be completed and the money to be sent out. Since most home owners wish to have a fast closing, you might want to start seeking out some other funding alternatives.

To add to it, banks have already been tightening their lending standards as of late, rendering it more difficult for someone to obtain a conventional home loan if their credit situation is not perfect or he doesn't have a regular salaried occupation. So will inadequate funding prevent you from sticking with your ambitions? Never, because you could always go the hard money loan route to pay for your flipping project.

A hard money home loan in provides what is regarded as imperative to many real estate sales — a very fast closing of just a few weeks and sometimes less. Plus, the LTV value can go up to 70% of the home's valuation, as determined by a certified appraiser. With interest rates starting off around 10%, hard money real estate loans may seem, at first, to be more costly as compared with conventional bank lending products. But the term lengths for these loans tend to be quite short, making the interest rate far less significant. As it pertains to short-term loans of one or two years or less, you should consider them similar to every other expense for your project. And as soon as you have turned the house, recovering this expense is comparable to recovering the expense for all the bathroom or other improvements you did.

Furthermore, even someone with poor credit can easily be eligible for a hard money mortgage. Instead of focusing entirely on the person's credit score or income, hard money lenders, who may be a private company or an individual person, authorize a loan after analyzing the property value, how easy it will be to market, its location, and the probability of getting back their money if they have to foreclose the loan. Adding to this, if the person can demonstrate past experience in comparable real estate projects, can place down money for the down payment, and the price of comparable properties in the vicinity works to his benefit, he has a really good shot of being eligible to get a hard money real estate loan.

So in the event you come across a really good and lucrative investment opportunity, rest assured you'll have a hard money lender in , able to lend you the money you need. Enter your info into the contact form on this page or give us a call to discuss the property you have in mind.