You discovered this phenomenal possibility for renovating and flipping this wonderful old condo in a very good location and it looks a lot like the deal you've been looking forward to for a long time. You may have heard that professional house flippers, similar to the married couple on HGTV's Flip or Flop, have an impressive average return of around forty to fifty thousand dollars. And yes, they are aided in a major way as a result of their professional experience, auction abilities and knowledge of hard money loans. However, you are convinced that your first class rehab and renovation talents will enable you to do a great job for this project — in addition, you've already lined up one of the best general contractors in town to take care of this project.

But where precisely do real estate investors obtain funds? If you get in touch with a customary lender, much like a bank for a loan, it in all likelihood will take, at a minimum, 4-8 weeks for your approval to be completed and the money to be dispersed. Given that home owners would prefer a fast closing, you might have to start looking for some other funding options.

To add to it, banks have already been tightening up their lending requirements in recent years, making it tough for someone to receive a typical home loan if their credit circumstances are not flawless or he doesn't have a consistent salaried occupation. So do you have to admit defeat and abandon your dream to venture off into fix and flips? Under no circumstances, especially when hard money loans can help you realize great things in real estate.

If you decide to apply for a hard money home loan in , you'll get what is probably most vital to real estate transactions across the country — a very fast closing of approximately a couple weeks. And additionally, loans can be made up to 70% loan-to-value of the as-is valuation, as calculated by a qualified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be higher priced than bank loans. But in reality, the lending rate is not as relevant for these loans, simply because they aren't long-term loans. Short-term loans of a couple months to a few years are best looked at as cost of capital, similar to any other financial outlay in connection with a project. And as soon as you have turned the property, recouping this expense is the exact same as recouping the expense for all the kitchen and bath improvements you performed.

In addition, even an individual with low credit will be able to qualify for a hard money mortgage. Rather than focusing only on the borrower's credit score or income, hard money lenders, who may be a privately owned company or an individual person, say yes to a loan after evaluating the home value, its salability, its location, and the probability of recouping their money should they have to foreclose the loan. The total amount that a borrower can put upfront towards the property, how much practical experience he has in real estate investments, and price range of comparative homes in the same neighborhood are various other factors that go into analyzing a borrower's qualification for a hard money real estate loan.

Searching for a hard money lender in to fund your flipping business is not hard, assuming that the opportunity that lies before you is promising and boasts a strong potential for returns. Submit the contact form or give us a call and let's talk about the property or properties you have in mind.