There is this phenomenal possibility for rehabbing and flipping this wonderful outdated property or home in a good part of town and it seems a lot like the one you've been looking forward to for quite some time. You've probably heard that veteran home flippers, similar to the couple on HGTV's Flip or Flop, have a remarkable average profit near $40,000 – $50,000. It's fair to say their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have been major factors to their successes. Still, your rehab and remodeling skills aren't bad either — besides, you've already found a good contractor to tackle this project.

But where do you get the needed funding for flipping? In the event you go after a regular bank loan, you will have to wait around somewhere around 4-8 weeks up until the money is approved and the funds are available. So if you're anticipating a fast closing, you need to understand that this may set you back by a couple weeks, causing you to miss out on the opportunity.

On top of this, banks have been tightening their lending standards in recent times, making it challenging for a person to get a typical home loan if their credit situation is not flawless or he does not possess a consistent salaried profession. So must you give up and abandon your desire to venture into real estate? Under no circumstances, particularly when California hard money loans enable you to realize great things in real estate.

A hard money home loan in California provides you with what's perhaps most essential to real estate investors — a very fast closing in as little as two weeks. Plus, the LTV value can reach up to 70% of the property's valuation, as evaluated by a credentialed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as higher priced than bank lending products. But if you consider these are not long-term mortgage loans, the rate can be misleading. Short-term loans of several months to a handful of years are best approached as cost of capital, similar to every other expenditure involved with a project. And when you have flipped the home, recovering this expense is identical to recovering the expense for all the bathroom or other improvements you performed.

What's more, it's easy to qualify for a hard money mortgage, regardless of whether your credit score is not that extraordinary. California hard money lenders do not approve a loan solely based on the customer's credit score — instead they additionally examine the property or home, its location and value, and the home's capacity to pay back the financing without the assistance of the person. Additional criteria that impact an applicant's acceptance for a hard money real estate loan include the amount he is in a position to put into a down payment, his former experience as a real estate investor, and price of comparative, fairly recently sold residences in the neighborhood.

Searching for a hard money lender in California to fund your fix and flip endeavor is not hard, assuming that the opportunity that lies ahead of you is promising and offers a good prospect for returns. Submit the contact form or call us and let's discuss your project.