Imagine you've run across this excellent bargain for a fix and flip property you found in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who hopes to try his hand at flipping. Expert house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to earn a gain of $40-$50k as an average on more than one occasion. And yes, they are aided in a major way due to their professional know-how, auction expertise and familiarity with hard money loans. Nonetheless, your rehab and renovation knowledge isn't bad either — besides, you've already found a suitable general contractor to take on the project.

But how can real estate investors get capital? A typical lending institution, say for example a bank, takes at the very least 1 to 2 months to approve the mortgage and release the monies. So if you will be looking for a fast closing, it's important for you to recognize that this may set you back by a couple of weeks, causing you to miss out on the home.

To add to it, banks have already been tightening up their lending criteria as of late, rendering it more tough for a person to receive a conventional home loan if their credit situation is not flawless or he does not have a regular salaried occupation. So does this leave you with no option, but to drop your ambition of getting into home renovating? Not at all, especially while hard money loans can help you achieve many amazing things in the real estate world.

A hard money home loan in promises what's perhaps most essential to real estate investors — a very fast closing time period of as few as two weeks. Furthermore, hard money lenders are capable of doing loans up to 70% LTV of the home's valuation, as determined by a certified third-party appraiser. Some people consider hard money real estate loans to be costlier than standard financing, since the interest rates for these loans typically start off at 10%. But the term lengths for these loans tend to be relatively shorter, making the rate much less important. When it comes to short-term loans of a handful of years or less, you should look at them the same as you might for every other expense for the project. And once you have finally sold the house, recuperating this expense is comparable to recovering the expense for the bathroom or other improvements you did.

Moreover, even a person with low credit will be able to qualify for a hard money mortgage. Rather than focusing strictly on the borrower's credit score or wages, hard money lenders, who can be a private company or an individual person, say yes to a loan after examining the property value, ease of marketability, its location, and the odds of recouping their money in the event of foreclosure. How much a person can put upfront for the house, how much practical experience he has in real estate investing, and price range of equivalent properties in the same area are various other factors that go into analyzing an individual's qualification for a hard money real estate loan.

So if you have stumbled on a wonderful home to flip with a significant chance of returns, you've also found yourself a hard money lender in that's ready to fund your rehab projects. Enter your info into the form on this page or call us and let's talk about the property you have in mind.