Suppose that you've stumbled upon this truly good bargain on a fix and flip property located in a terrific neighborhood, and you are either an experienced real estate investor or a first-timer who wants to try out flipping houses. Professional home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a profit of $40-$50k on the majority of projects. And yes, they are aided in a major way due to their professional know-how, auction expertise and understanding of hard money loans. Still, your rehab and remodeling skills aren't that bad either — besides, you've already located a suitable building contractor to tackle this job.

But where precisely do real estate investors find funding? A typical lender, say for example a bank, takes no less than 1-2 months to authorize the financing and release the cash. Given that home owners give preference to a fast closing, you may have to begin seeking out some other funding alternatives.

With banks establishing more challenging loan criteria in recent years, it is much harder for a self-employed individual to find a home loan, especially when his credit circumstances are not perfect. So does that leave you with no other option, but to give up your dream of venturing into home flipping? Certainly not, due to the fact you can always go the hard money loan route to fund your rehab project.

If you decide to obtain a hard money home loan in , you have access to what's probably most essential to real estate negotiations throughout the country — a very fast closing of roughly 2 weeks. And additionally, loans can be done for up to 70% loan-to-value of the as-is property value, as determined by a licensed appraiser. Some people consider hard money real estate loans to be higher in price than regular loans, because the lending rates of such loans often start at 10%. But the lengths of these loans are comparatively short, which makes the rate far less important. Short-term loans of a couple of months to a handful of years are best thought of as cost of capital, much like all other expenditures related to a project. After you rehab and sell the house, recovering this expense is just like recouping the cost of the home appliances you put in the house.

Apart from this, hard money mortgages are not difficult to qualify for, whether or not you have got a bad credit score. The person's credit score will not be the sole deciding factor for hard money lenders — they also examine the property, its market valuation, where it is located, and its potential to return their financial commitment if things do not go as planned. On top of this, if the individual have proven experience in comparable real estate endeavors, can put down cash towards the down payment, and the price of comparative properties in the area works in his favor, he has got a really good shot of being approved to obtain a hard money real estate loan.

So in case you have found a wonderful home to flip with a significant potential for returns, you have also stumbled upon a hard money lender in that is happy to provide financing for your flipping project. Enter your info into the contact form or get in touch with us via phone and let's discuss the property or properties you have in mind.