There's this amazing opportunity to rehab and flip this wonderful outdated property or home in a good part of town and it looks a lot like the deal you've been wanting for quite a while. Most folks know that knowledgeable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, can generate a typical profit of $40,000 to $50,000 when they rehab properties. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have had an important part in their success. Nonetheless, your rehab and renovation knowledge isn't that bad either — aside from that, you have already found a good licensed contractor to tackle the job.

But where do you find the necessary funding for flipping? Should you apply for a traditional bank loan, you will wind up waiting roughly 4-8 weeks until the mortgage loan is authorized and the funding is readily available. Given that sellers favor a fast closing, you may have to begin searching for some other financing alternatives.

On top of this, banks have been tightening up their lending standards as of late, rendering it more hard for people to get a conventional home loan if their credit circumstances are not perfect or he doesn't have a regular salaried occupation. So does this leave you with no option, but to give up your ambition to venture into flipping? By no means, particularly while hard money loans enable you to achieve great things in the real estate world.

A hard money home loan in gives you what is regarded as vital to many real estate transactions — a fast closing of only a couple of weeks and at many times even less. What's more, the LTV value can go up to 70% of the home value, as evaluated by a credentialed appraiser. A number of people believe hard money real estate loans to be more expensive than regular loans, considering interest rates for these loans normally start off at 10%. But the time frames of these loans are fairly short, making the interest rate much less important. When it comes to short-term loans of a few years or less, you should look at them similar to any other expense for your project. Right after you remodel and unload the home, recouping this expense is just like recouping the one for home appliances you installed in the property.

Aside from that, hard money mortgages are easy qualifying, regardless if you have bad credit. Instead of focusing exclusively on the borrower's credit score or income, hard money lenders, who could be a private company or an individual, approve a loan as a result of evaluating the home value, its salability, where it is located, and the odds of recuperating their capital if they have to foreclose the loan. The amount that a borrower can put down beforehand for the home, how much experience he has in real estate investments, and price range of comparable homes in the same area are other details that go into establishing a person's qualification for a hard money real estate loan.

So if you have stumbled on an excellent fixer-upper with a huge probability of returns, you have also found yourself a hard money lender in who is happy to provide funding for your flipping project. Submit the form on this page or give us a call to talk about your property.