There's this amazing possibility for fixing and flipping this wonderful out of date condo in a very good location and it looks a lot like the one you have been expecting for quite a while. Most folks know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, can earn an average profit margin of $40,000 to $50,000 on their flips. No need to explain that their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have been major factors to their results. Still, your rehab and remodeling knowledge isn't bad either — besides, you have already found an ideal licensed contractor to start the home.

But money is usually a different issue altogether. If you approach a common lending institution, much like a bank for funding, it likely will take a minimum of four to eight weeks for your approval to come through and your money to be distributed. With the home owners wanting a fast closing, that doesn't appear to be a good option to you at all.

With banks introducing tougher loan standards in the past several years, it is now harder for a self-employed individual to find a home loan, particularly if his credit rating is not flawless. So does that mean you have no option, but to give up your aspiration of getting into rehabbing? Not at all, particularly while hard money loans will assist you to accomplish great things in the real estate world.

If you should put in an application for a hard money home loan in , you'll get what is probably most important to real estate purchases across the country — a fast closing of approximately two weeks. In addition, the LTV value can reach up to 70% of the property's valuation, as estimated by a certified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be higher priced than bank lending products. But the time frames of these loans are relatively shorter, making the interest rate less significant. When it comes to short-term loans of a handful of years or even less, you should think about them identical to any kind of other expenditure for your project. Once you have sold the house and have made a good gain, you'll be able to get back this expense from the property — similar to recovering the money spent on the brand-new kitchen appliances that you've installed.

Besides, hard money mortgages are easy qualifying, even in the event you have poor credit. Instead of focusing solely on the applicant's credit score or source of income, hard money lenders, who could be a privately owned company or an individual person, approve a loan after analyzing the home value, how easy it will be to market, where it is located, and the possibility of recuperating their money in the event of foreclosure. Other variables that impact a person's acceptance for a hard money real estate loan include how much he can put towards a down payment, his previous experience being a real estate investor, and price of comparative, fairly recently sold properties in the area.

Searching for a hard money lender in to fund your flipping business is not very hard, as long as the opportunity that lies ahead of you is promising and boasts a good potential for returns. Complete the form on this page or get in touch with us via phone to discuss the property or properties you have in mind.