You discovered this amazing possibility for rehabbing and flipping this wonderful old property or home in a good part of town and it looks like the deal you have been expecting for quite a while. You may have heard that professional house flippers, such as the married couple on HGTV's Flip or Flop, turn a remarkable average return of around $40,000 – $50,000. It goes without saying their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction talents have had a significant role in their results. On the other hand, you're certain that your first class rehab and remodeling knowledge can help you do an outstanding job on the house — in addition, you already have lined up one of the most recommended general contractors in the business to handle the job.

But capital can be a separate question altogether. If you apply for a traditional loan via a bank, you will need to wait around roughly 30-60 days before the loan is authorized and your funds are available. Because most home owners would prefer a fast closing, it may be best to start seeking out additional financing options.

Furthermore, if you have a sub-optimal credit situation or do not receive a conventional income source, it usually is more challenging to obtain bank financing, seeing the stricter loan guidelines banks have introduced as of late. So does that leave you with no other option, but to drop your aspiration of getting into flipping? Most certainly not, because you also have the hard money loan alternative.

If you should get a hard money home loan in , you're going to get what's probably most vital to real estate transactions across the country — a fast closing of roughly fourteen days. Plus, the LTV value can range up to 70% of the place's valuation, as evaluated by a certified appraiser. At first, hard money real estate loans, with starting interest rates of 10%, appear to be more costly than bank financing. But usually, the interest rate isn't as pertinent for these loans, given that they are not long-term financing. The cost of such short-term loans ought to be evaluated on par with every other expense that you would encounter during the project. After you renovate and resell the home, recouping this expense is the same as recovering the expense for home appliances you put in the house.

What's more, it is simple to qualify for a hard money mortgage, even in the event your credit situation is not that extraordinary. hard money lenders do not authorize a loan solely according to the borrower's credit score — rather they also look at the home, its location and value, and the property's ability to pay back the financing independent of the person. Additional criteria that have an impact on a person's approval for a hard money real estate loan include the amount he is able to put towards a down payment, his past experience as a real estate investor, and price range of comparable, just recently sold homes nearby.

So should you run into a very good and profitable flipping opportunity, feel comfortable knowing you will have a hard money lender in , willing to loan you the funds you need. Enter your info into the form on this page or give us a call and let's discuss your property or properties.