A fabulous bargain on a fix and flip property located in a very good subdivision shows up out of the blue — seems too good to be true. Expert house flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a gain of forty to fifty grand as an average on more than one occasion. It's fair to say their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction skills have been large factors to their results. Nonetheless, your rehab and remodeling skills aren't bad either — besides, you've already found an ideal contractor to start the home.

But how can you obtain the necessary financing for flipping? When you apply for an ordinary bank loan, you will need to wait roughly 1-2 months until the mortgage loan is approved and the funds are readily available. With the home owners wanting a fast closing, that does not appear to be a wise idea to you whatsoever.

With banks bringing in tougher loan guidelines in the past few years, it has become tougher for a self-employed individual to find a mortgage loan, particularly if his credit score is not perfect. So will a shortage of financing stop you from pursuing your aspirations? Under no circumstances, particularly when hard money loans enable you to accomplish many amazing things in the real estate world.

If you decide to opt for a hard money home loan in , you will get what's possibly most important to real estate purchases across the country — a fast closing of roughly 2 weeks. Plus, the LTV value can range up to 70% of the home value, as estimated by a competent appraiser. A number of people believe hard money real estate loans to be higher priced than customary financing, because the lending rates of such loans commonly start at 10%. But the time frames of these loans tend to be quite shorter, which means the interest rate is much less important. The price tag on such short-term loans should be looked at on par with every other expense that you will encounter during the project. Right after you rehab and sell off the home, recovering this expense is the same as recuperating the expense for stainless steel appliances you installed in the property.

Apart from this, hard money mortgages are not difficult to qualify for, even if you have below-average credit. hard money lenders don't approve a loan exclusively based on the borrower's credit score — rather they also look at the home, where it is located and how much it is worth, and the property's ability to pay back the financing independent of the borrower. Adding to this, if the applicant can demonstrate past experience in comparable real estate projects, can put down cash for the down payment, and the price of comparable properties in the vicinity works to his benefit, he stands an excellent likelihood of being eligible to obtain a hard money real estate loan.

So if you have found a really great fixer-upper with a high chance of returns, you have also found yourself a hard money lender in who is happy to provide financing for your fix and flip ventures. Submit the contact form on this page or get in touch with us via phone and let's discuss your property or properties.