Suppose you've run across this truly good deal for a fix and flip property in a great location, and you are either a seasoned real estate investor or a first-timer who is looking to try out flipping homes. Professional property flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a profit of forty to fifty grand for most homes. Of course, you also recognize that their successes are attributed to the fact that they're professionals, are knowledgeable in hard money loans, they understand the market quite well and in addition, they know how to work an auction to buy their properties at an appropriate deal. On the other hand, you are assured that your impressive rehab and remodeling talents will enable you to do a quality job on the home — furthermore, you already have lined up one of the most recommended contractors in the area to work on this project.

But how do you find the necessary capital for home flipping? A traditional lending institution, say for example a bank, takes at the very least 1-2 months to consent to the financing and release the monies. Since most sellers favor a fast closing, you might want to start searching for additional funding options.

With banks introducing more challenging loan standards in the past several years, it has become more difficult for a self-employed person to obtain a mortgage loan, particularly if his credit circumstances are not perfect. So do you have to give up and abandon your dream to get into fix and flips? Definitely not, because you always have the hard money loan option.

When you apply for a hard money home loan in , you will get what is possibly most essential to real estate offers throughout the country — a very fast closing of approximately a couple weeks. Further, loans are made up to 70% loan-to-value of the as-is value, as determined by a licensed appraiser. With loan rates starting off near 10%, hard money real estate loans might appear, at first, to be more pricey in comparison with conventional bank lending products. But once you understand these are not long-term loans, the rate tends to be misleading. The price tag on such short-term loans should be considered much like every other financial outlay that you would encounter in the course of the project. Once you have turned the home and have made a positive profit, you can recoup this expense from the home — the same as recovering the money necessary for the brand-new appliances for the kitchen that you installed.

Aside from that, hard money mortgages are not difficult to qualify for, regardless if you posses below-average credit. Instead of focusing entirely on the person's credit score or source of income, hard money lenders, who could be a private company or an individual, say yes to a loan after evaluating the home value, its marketability, its location, and the possibility of recovering their capital in the event of foreclosure. The amount that an individual can put down beforehand for the property or home, his real estate experience, and price range of equivalent properties in the same area are other details that go into determining an individual's qualification for a hard money real estate loan.

So in the event you come across an outstanding and worthwhile flipping opportunity, rest assured you will have a hard money lender in , able to lend you the funds you need. Fill out the contact form on this page or get in touch with us via phone and let's discuss your project.