Suppose that you've come across this truly good deal for a fix and flip property you found in an ideal neighborhood, and you happen to be either a skilled real estate investor or a first-timer who wants to try his hand at flipping. You've heard that veteran home flippers, like the couple on HGTV's Flip or Flop, enjoy a remarkable average return of around forty to fifty thousand dollars. And yes, they are aided in a big way via their professional knowledge, auction skills and familiarity with hard money loans. However, you are assured that your superb rehab and renovation talents will help you do an outstanding job on the house — furthermore, you've already lined up one of the premier building contractors in the business to take care of this job.

But how can you obtain the needed funding for home flipping? A standard lending institution, like for example a bank, takes at the very least 1 to 2 months to approve the loan and deliver the money. Since the majority of sellers would prefer a fast closing, you may have to start searching for other funding alternatives.

With banks introducing harder loan criteria in the recent past, it is now more difficult for a self-employed individual to get a mortgage loan, particularly if his credit circumstances are not perfect. So should you admit defeat and abandon your aspiration to get into fix and flips? Never, because you could always go the hard money loan route to fund your home renovating project.

A hard money home loan in provides what is possibly most important to real estate investors — a very fast closing in as few as two weeks. Furthermore, hard money lenders can do loans up to 70% LTV of the property or home's valuation, as calculated by a credentialed third-party evaluator. At first, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank lending options. But usually, the rate of interest is not as pertinent for these loans, simply because they are not 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 all other costs associated with a project. Right after you fix up and sell the house, recuperating this expense is no different than recovering the expense for stainless steel appliances you placed into the home.

Besides, hard money mortgages are easy qualifying, even if you have a weak credit score. hard money lenders don't approve a loan exclusively according to the customer's credit score — instead they will assess the property or home, its location and value, and the property's ability to pay back the financing independent of the person. Other criteria that affect a person's approval for a hard money real estate loan can include how much he can put towards a down payment, his previous experience being a real estate investor, and price of comparable, just recently sold properties in the vicinity.

So in case you have stumbled upon a really good fixer-upper with a significant probability of returns, you've also stumbled upon a hard money lender in who is prepared to provide financing for your rehab ventures. Complete the form on this page or call us and let's talk about your property or properties.