There's this phenomenal opportunity to fix and flip this wonderful old property or home in a fantastic part of town and it looks a lot like the deal you've been expecting for a long time. You may have heard that competent home flippers, like the husband and wife on HGTV's Flip or Flop, have an impressive average profit of around forty to fifty thousand dollars. Of course, you also are aware that their great results are credited to the simple fact that they are industry experts, are proficient in hard money loans, they understand market trends quite well and in addition, they are good at working an auction for getting a reasonable deal. Still, your rehab and renovation knowledge isn't that bad either — besides, you have already located a good contractor to take on the job.

But funding is often a separate issue entirely. In the event you go after a normal bank loan, you will have to wait somewhere around one to two months until eventually the financing is authorized and your funds are available. With all the sellers looking for a fast closing, that doesn't seem like a great idea to you in the slightest.

On top of this, banks have already been tightening their lending criteria as of late, rendering it more hard for someone to receive a typical home loan if their credit circumstances are not perfect or he is lacking a consistent salaried profession. So does that mean you are without an option, but to drop your dream of getting into flipping? Certainly not, on the grounds that you could always go the Lewisville hard money loan route to fund your home flipping project.

A hard money home loan in Lewisville gives you what is viewed as essential to many real estate sales — a very fast closing of only a couple of weeks and at many times even less. Also, hard money lenders can approve funding up to 70% LTV of the property or home's valuation, as determined by a licensed third-party appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank loans. But when you consider these loans are not long-term home loans, the rate of interest tends to be misleading. The cost of such short-term loans should be considered on par with any other cost that you would encounter during the project. Once you've turned the property and have made a successful financial gain, you'll be able to recover this expense from the house — the same as recuperating the money spent on the brand-new kitchen appliances that you've put in.

Furthermore, even a person with bad credit will be able to qualify for a hard money mortgage. As an alternative for focusing exclusively on the applicant's credit score or source of income, Lewisville hard money lenders, who can be a privately owned company or an individual, authorize a loan as a result of evaluating the home value, its marketability, its location, and the possibility of recovering their capital in case of foreclosure. Adding to that, if the applicant have proven experience in equivalent real estate projects, can put down money for the down payment, and the value of comparable homes in the neighborhood works to his benefit, he stands a really good chance of being approved to get a hard money real estate loan.

So any time you come across a very good and worthwhile investment opportunity, feel comfortable knowing you'll have a hard money lender in Lewisville, equipped to lend you the money that you need. Complete the form on this page or give us a call and let's talk about the property or properties you have in mind.