Suppose you've come across this really great bargain for a fix and flip property you found in a terrific neighborhood, and you are either a seasoned real estate investor or a newbie who is looking to try his hand at flipping. Professional property flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are able to generate a gain of forty to fifty grand for the majority of homes. Of course, you also know that their great results can be attributed to the simple fact that they are professionals, are proficient in hard money loans, they understand the market quite well and additionally, they are good at working an auction to buy their houses at a good price. On the other hand, you're convinced that your first class rehab and renovation abilities will help you do an outstanding job for this property — additionally, you've already arranged to have one of the best building contractors in the area to take care of the project.

But capital is often a different problem entirely. For those who meet with a regular lender, much like a bank for funding, it can take, at the very least, thirty to sixty days for your approval to come through and your funds to be sent out. So if you will be hoping for a fast closing, you must be aware that this will cost you a couple weeks, making you miss out on the opportunity.

On top of this, banks have already been tightening up their lending standards in recent times, making it hard for people to obtain a typical home loan if their credit rating is not flawless or he does not have a regular salaried profession. So will inadequate funding prevent you from sticking to your ambitions? By no means, because you could always go the hard money loan route to finance your home renovating project.

A hard money home loan in can provide what is deemed vital to many real estate deals — a very fast closing of only a couple of weeks and more often than not less. And additionally, loans can be made up to 70% loan-to-value of the as-is valuation, as determined by a licensed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank loans. But in reality, the interest rate is not as relevant for these loans, since they will never be long-term financing. Short-term loans of a couple months to a few years are best thought of as cost of capital, similar to every other expense associated with a project. When you have resold the property or home and have made a successful profit, you can recoup this expense from the property — the same as recovering the cost of brand-new appliances for the kitchen that you've installed.

Additionally, it is simple to qualify for a hard money mortgage, regardless if your credit score is not that superb. hard money lenders do not approve a loan solely based on the customer's credit score — rather they additionally look at the property or home, its value and location, and the property's capacity to pay back the loan independent of the applicant. Adding to this, if the applicant have proven experience in comparable real estate endeavors, can put down money towards a down payment, and the cost of equivalent homes in the vicinity works in his favor, he stands a really good chance of being eligible for a hard money real estate loan.

So in case you have found a really great real estate opportunity with a high prospect of returns, you have also found yourself a hard money lender in who's ready to finance your fix and flip project. Fill out the form or give us a call and let's talk about your project.