A remarkable bargain on a fix and flip opportunity located in a nice neighborhood all of a sudden shows up — seems too good to be true. Professional property flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a gain of $40-$50k for the majority of homes. And sure, they are helped in a big way by their professional experience, auction skills and understanding of hard money loans. With that being said, you have recently been developing your rehab and remodeling skills, have a very good licensed contractor ready for the project and are certain that you can do a stellar job on this property.

But money is often a different issue entirely. When you opt for a traditional loan via a bank, you will end up waiting around somewhere around 1-2 months up until the time the mortgage loan is approved and the funds are ready to go. So if you're anticipating a fast closing, it is important you understand that this may set you back by weeks, making you lose out on the opportunity.

On top of this, banks have already been tightening their lending criteria in recent times, making it difficult for someone to receive a traditional loan if their credit rating is not flawless or he doesn't have a regular salaried job. So does this mean you are without an option, but to give up your aspiration of venturing into rehabbing? Most certainly not, given that you also have the hard money loan option.

A hard money home loan in boasts what is perhaps most sought after by real estate investors — a quick closing time period of as little as two weeks. What's more, the LTV value can range up to 70% of the property value, as evaluated by a certified appraiser. With loan rates starting at about 10%, hard money real estate loans may look, initially, to be more pricey compared to traditional bank loans. But usually, the lending rate isn't as pertinent for these loans, since they will never be long-term financing. Short-term loans of several months to a handful of years are best looked at in terms of cost of capital, the same as any other financial outlay involved with a project. After you remodel and sell off the property, recouping this expense is no different than recuperating the expense for home appliances you placed into the home.

Additionally, it is simple to be eligible for a hard money mortgage, even in the event your credit situation is not that impressive. hard money lenders do not approve a loan strictly judging by the customer's credit score — rather they will analyze the home, its location and value, and the home's capability to pay back the loan without the help of the borrower. The total amount that an individual can put down in advance for the house, how much experience he has in real estate investments, and price range of comparable properties in the same vicinity are various other factors that go into analyzing an individual's eligibility for a hard money real estate loan.

So in the event you come across a very good and worthwhile flipping opportunity, rest assured you will have a hard money lender in , willing to lend you the capital you need. Fill out the form or give us a call to discuss your project.