A remarkable bargain on a fix and flip property located in an excellent area of the city suddenly turns up — seems too good to be true. Professional home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are able to earn a profit of forty to fifty grand on the majority of projects. And indeed, they are aided in a major way via their professional knowledge, auction skills and familiarity with hard money loans. Still, your rehab and renovation skills aren't that bad either — in any case, you have already identified a good licensed contractor to start the home.

But capital is usually a separate question altogether. A conventional lender, for instance a bank, takes a minimum of 1 to 2 months to approve the financing and deliver the funds. Because most sellers favor a fast closing, you might want to start looking for some other funding options.

With banks establishing tougher loan criteria in the past several years, it's become much harder for a self-employed individual to find a mortgage loan, particularly if his credit rating is not perfect. So do you have to admit defeat and abandon your aspiration to embark into real estate? By no means, considering that you could always use the hard money loan approach to fund your home renovating project.

A hard money home loan in provides you with what's possibly most sought after by real estate investors — a fast closing in as few as a few weeks. Also, hard money lenders are able to do loans up to 70% LTV of the home value, as identified by a credentialed third-party evaluator. With the interest rates starting near 10%, hard money real estate loans may appear, at first glance, to be more pricey when compared with conventional bank financing. But in reality, the rate of interest isn't as pertinent for these loans, since they aren't long-term financing. As it pertains to short-term loans of several years or even less, you should look at them just like you would other expenses for your project. When you have resold the property or home and have made a good gain, you can recoup this expense from the house — the same as recouping the money necessary for the brand-new home appliances that you installed.

Aside from that, hard money mortgages are easy qualifying, even in the event you have very bad credit. The customer's credit score isn't the primary determining factor for hard money lenders — additionally, they look at the home, its market valuation, where it is located, and its capability to return their financial commitment if things should not go as planned. The total amount that a borrower can put upfront towards the property or home, how much experience he has in real estate investing, and price range of comparable homes in the vicinity are various other factors that go into ascertaining a borrower's eligibility for a hard money real estate loan.

So in the event you come across a really good and lucrative investment opportunity, be assured you will have a hard money lender in , able to loan you the money you need. Complete the form on this page or call us to discuss your property or properties.