Hard Money Loans in Clay

An incredible deal on a fix and flip opportunity located in a nice subdivision all of a sudden shows up — sounds too good to be true. Everybody knows that capable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, are able to make a typical profit of $40,000 to $50,000 in their rehab business. It's fair to say their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction talents have played a significant part in their successes. Having said that, you have recently been brushing up your rehab and remodeling knowledge, have got a general contractor ready to go and are positive that you will be able to do a great job for this property.

But how can you find the necessary capital for flipping? A traditional lending institution, say for example a bank, takes no less than 1-2 months to consent to the loan and hand over the cash. So if you're expecting a fast closing, it is important to realize that this may cost you weeks, causing you to lose out on the house.

To add to it, banks have been tightening their lending requirements as of late, which makes it tough for people to receive a traditional loan if their credit rating is not flawless or he doesn't have a consistent salaried job. So does that mean you have no option, but to give up your ambition of venturing into flipping? By no means, considering that you can always use the hard money loan approach to pay for your home flipping project.

A hard money home loan in gives you what's possibly most crucial to real estate investors — a quick closing time of as little as two weeks. Also, hard money lenders can do lending up to 70% LTV of the home's valuation, as assessed by a professional third-party evaluation. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank loans. But in reality, the lending rate is not as useful a measure for these loans, since they are not long-term loans. Short-term loans of several months to a handful of years are best approached as cost of capital, similar to all other expenses associated with a project. When you have resold the house and have made a successful financial gain, you'll be able to get back this expense from the property or home — very much like recovering the money spent on the brand-new appliances for the kitchen that you put in.

Moreover, even an individual with weak credit can easily be eligible for a hard money mortgage. hard money lenders do not authorize a loan strictly based on the borrower's credit score — rather they also look at the property, its location and value, and the property's capability to pay back the loan without the help of the borrower. How much a borrower can put down in advance towards the property, how much practical experience he has in real estate investing, and price range of equivalent properties in the neighborhood are various other factors that go into determining an applicant's suitability for a hard money real estate loan.

Finding a hard money lender in to finance your real estate project is not difficult, as long as the opportunity in front of you is promising and possesses the right prospect for returns. Fill out the contact form or give us a call and let's discuss the property you have in mind.

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Investment property loans only please, no primary residences at this time.