An incredible deal on a fix and flip opportunity located in an excellent neighborhood shows up out of the blue — sounds so good that it's difficult to believe. Expert home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a gain of $40-$50k on a consistent basis. It goes without saying their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction skills have had an important role in their success. With that being said, you have likewise been developing your rehab and renovation skills, have a general contractor ready for the project and are confident that you can do a stellar job for this property.

But where precisely do real estate investors get funding? Should you apply for a normal bank loan, you will wind up waiting around approximately one to two months until the mortgage is approved and your money is ready to go. Given that home owners prefer a fast closing, you may want to begin looking for other funding alternatives.

With banks adding harder loan criteria in the recent past, it is now more difficult for a self-employed person to get a home loan, especially when his credit score is not perfect. So must you stop trying and forego your desire to embark into fix and flips? Absolutely not, seeing as you always have the hard money loan alternative.

A hard money home loan in gives you what's considered imperative to most real estate sales — a very fast closing of just a few weeks and at times less. In addition, the LTV value can range up to 70% of the place's valuation, as determined by a certified appraiser. A number of people believe hard money real estate loans to be higher in price than ordinary loans, considering interest rates for these loans often start out at 10%. But the lengths of these loans tend to be comparatively shorter, making the interest rate far less important. The price of such short-term loans ought to be evaluated much like every other expense that you would have to meet for the project. Once you've turned the house and have made a successful return, you can recoup this expense from the property — very much like recovering the money necessary for the brand-new home appliances that you have installed.

Additionally, it is easy to qualify for a hard money mortgage, even in the event your credit situation is not that superb. The customer's credit score will not be the lone deciding factor for hard money lenders — additionally, they look at the house, what is it valued at, its location, and its ability to return their investment if things should not go as intended. Other criteria that influence a borrower's acceptance for a hard money real estate loan include how much he is in a position to put into a down payment, his previous experience being a real estate investor, and price of comparative, recently sold homes nearby.

Searching for a hard money lender in to finance your real estate project is not very challenging, as long as the opportunity that lies ahead of you is promising and boasts a good potential for returns. Fill out the contact form or give us a call and let's discuss the property or properties you have in mind.