A fabulous deal on a fix and flip opportunity located in a nice neighborhood all of a sudden shows up — sounds too good to be true. Professional property flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to earn a gain of $40-$50k for most homes. And yes, they are helped in a big way due to their professional know-how, auction abilities and understanding of hard money loans. Nonetheless, your rehab and remodeling knowledge isn't bad either — in any case, you've already identified a suitable building contractor to take on the home.

But where can you obtain the needed financing for home flipping? A conventional lender, say for example a bank, takes no less than one to two months to approve the financing and release the money. So if you're expecting a fast closing, it's important for you to understand or know that this may cost you a couple weeks, causing you to miss out on the home.

What's more, if you have a less-than-perfect credit situation or don't have a regular income source, it can be tougher for you to obtain a bank loan, considering the tougher loan guidelines banks have introduced recently. So should you stop trying and abandon your desire to venture off into real estate? Certainly not, considering that you can always use the Lafayette hard money loan approach to pay for your home flipping project.

A hard money home loan in Lafayette gives you what is considered essential to most real estate transactions — a very fast closing of only a couple of weeks and more often than not less. Additionally, loans can be done for up to 70% loan-to-value of the "as is" value, as established by a qualified appraiser. With interest rates starting off around 10%, hard money real estate loans may appear, at first glance, to be higher priced as compared with traditional bank lending products. But if you consider these are not long-term loans, the rate may be misleading. As it pertains to short-term loans of one or two years or less, you should consider them much like you would other expenses for your project. Right after you fix up and sell the home, recouping this expense is the same as recouping the one for stainless steel appliances you installed in the property.

Besides, hard money mortgages are easy qualifying, whether or not you have poor credit. Instead of focusing entirely on the person's credit score or source of income, Lafayette hard money lenders, who may be a private company or an individual, say yes to a loan as a result of analyzing the home value, its marketability, where it is located, and the odds of recouping their money in the event of foreclosure. Other variables that influence a person's acceptance for a hard money real estate loan include how much money he can put towards a down payment, his former experience as a real estate investor, and price range of similar, just recently sold homes in the vicinity.

Locating a hard money lender in Lafayette to finance your flipping business is not very challenging, as long as the opportunity in front of you is promising and possesses a good potential for returns. Fill out the form or get in touch with us via phone and let's talk about the project you have in mind.