Imagine you've encountered this excellent bargain for a fix and flip property you found in a great neighborhood, and you're either an experienced real estate investor or a first-timer who wants to try out flipping houses. Most folks know that capable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping program, Fix or Flop, can turn a typical profit of $40,000 to $50,000 on their flips. Naturally, you also recognize that their results can be attributed to the simple fact that they are industry experts, are proficient in hard money loans, they know market trends really well and they also are good at working a public auction to purchase their properties at a reasonable deal. With that being said, you have also been cultivating your rehab and renovation knowledge, have a contractor ready for the project and are confident that you will be able to do a great job on this home.

But how do you find the necessary financing for flipping? A standard lender, like for example a bank, takes at least 1 to 2 months to consent to the financing and provide the cash. Since the majority of sellers would rather have a fast closing, you might need to begin seeking out other financing options.

To add to it, banks have been tightening up their lending standards in recent years, rendering it more tough for someone to obtain a regular home loan if their credit circumstances are not flawless or he does not have a consistent salaried job. So do you have to give up and forego your ambition to venture off into fix and flips? Absolutely not, given that you always have the hard money loan alternative.

A hard money home loan in offers you what is viewed as essential to most real estate sales — a fast closing of only a couple of weeks and sometimes less. Aside from that, loans are made up to 70% loan-to-value of the "as is" value, as calculated by a professional appraiser. A number of people believe hard money real estate loans to be higher priced than regular loans, since the interest rates of such loans commonly start at 10%. But in reality, the rate of interest isn't as useful a measure for these loans, since they will never be long-term loans. Short-term loans of a couple of months to a handful of years are best understood in terms of cost of capital, similar to any other financial outlay related to a project. After you rehab and sell the home, recuperating this expense is the same as recovering the money you spent for new kitchen appliances you put in the home.

Also, it isn't difficult to qualify for a hard money mortgage, regardless of whether your credit rating is not that great. The borrower's credit score will not be the single determining factor for hard money lenders — they also analyze the house, its market valuation, where it is located, and its capacity to bring back their financial commitment if things do not work out as planned. The amount that a borrower can put upfront towards the property, his real estate experience, and price range of comparable properties in the same neighborhood are other factors that go into analyzing an individual's eligibility for a hard money real estate loan.

So should you run into a good and profitable investment opportunity, be assured you will have a hard money lender in , equipped to loan you the cash that you need. Complete the form or get in touch with us via phone to talk about the project you have in mind.