An outstanding buy on a fix and flip opportunity in a nice area of the city all of a sudden shows up — sounds too good to be true. Most folks know that expert professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can earn a typical profit of forty to fifty thousand dollars on their home projects. It goes without saying their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction skills have played a significant role in their results. Having said that, you have likewise been cultivating your rehab and remodeling knowledge, have got a contractor ready to go and are confident that you will be able to do a stellar job for this house.

But financing can be a different issue entirely. When you go after a conventional bank loan, you will wind up waiting around approximately 30-60 days up until the time the financing is approved and the money is accessible. So if you're looking for a fast closing, you have to recognize that this could cost you a few weeks, making you miss out on the opportunity.

With banks adding harder loan criteria in recent years, it is now more difficult for a self-employed individual to obtain a mortgage loan, especially when his credit rating is not perfect. So does that leave you with no other option, but to drop your dream to venture into home flipping? Most certainly not, because you always have the Lafayette hard money loan alternative.

A hard money home loan in Lafayette promises what's probably most essential to real estate investors — a quick closing in as little as 2 weeks. What's more, the LTV value can go up to 70% of the property's valuation, as determined by a credentialed appraiser. With the lending rates starting out at about 10%, hard money real estate loans may appear, at first glance, to be higher priced in comparison with traditional bank lending products. But usually, the rate of interest isn't as useful a measure for these loans, since they aren't long-term loans. When it comes to short-term loans of a handful of years or even less, you should think of them identical to every other expense for the project. After you remodel and unload the property, recovering this expense is no different than recouping the money you spent for new kitchen appliances you placed into the property.

What's more, it's simple to qualify for a hard money mortgage, regardless of whether your credit score is not that extraordinary. Rather than focusing only on the applicant's credit score or net income, Lafayette hard money lenders, who may be a privately owned company or an individual person, authorize a loan after assessing the property value, how easy it will be to market, where it is located, and the odds of getting back their capital in the event of foreclosure. The amount that an applicant can put upfront towards the house, his real estate experience, and price range of comparable homes in the vicinity are additional factors that go into ascertaining a person's suitability for a hard money real estate loan.

If you happen to have found an excellent real estate opportunity with a high chance of returns, you've also discovered a hard money lender in Lafayette who's prepared to provide financing for your flipping venture. Enter your info into the contact form on this page or give us a call to talk about the project you have in mind.