There is this amazing opportunity to rehab and flip this wonderful out of date home in a very good location and it looks a lot like the deal you've been looking forward to for a long time.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 home flippers, like the married couple on HGTV's Flip or Flop, enjoy an impressive average profit of around $40,000 – $50,000. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction skills have had an important role in their successes. On the other hand, you are certain that your impressive rehab and renovation knowledge will help you do a superb job on the house — in addition, you have already arranged to have one of the most sought after building contractors in the area to take on the project.

But financing is a different problem altogether. Should you go after a normal bank loan, you will end up waiting around somewhere around one to two months before the loan is approved and the funds are available. Since most sellers wish to have a fast closing, you might have to begin looking for some other funding alternatives.

With banks introducing harder loan standards in the recent past, it has become tougher for a self-employed individual to obtain a home loan, especially if his credit score is not perfect. So will a lack of funds prevent you from pursuing your aspirations? Under no circumstances, particularly while hard money loans will assist you to realize many amazing things in the real estate market.

A hard money home loan in can provide what is regarded as vital to most real estate sales — a quick closing of only a few weeks and sometimes even less. What's more, the LTV value can go up to 70% of the property value, as determined by a competent appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be more costly than bank loans. But usually, the lending rate isn't as relevant for these loans, simply because they aren't long-term loans. Short-term loans of a couple months to a handful of years are best understood in terms of cost of capital, the same as any other expense related to a project. Once you have resold the home and have made a successful return, you're able to recoup this expense from the home — just like recouping the cost of brand-new appliances for the kitchen that you have put in.

Moreover, even an individual with bad credit can easily be eligible for a hard money mortgage. Instead of focusing primarily on the borrower's credit score or income, hard money lenders, who could be a private company or an individual, say yes to a loan as a result of examining the home value, ease of marketability, its location, and the odds of recouping their money in case they have to foreclose the loan. Additional criteria that influence a person's acceptance for a hard money real estate loan can include the amount he is able to put towards a down payment, his previous experience as a real estate investor, and selling price of comparative, fairly recently sold residences in the vicinity.

So should you come across an outstanding and profitable investment opportunity, rest assured you will have a hard money lender in , willing to loan you the money you will need. Fill out the form or get in touch with us via phone to discuss your property or properties.