Suppose that you've run across this excellent deal on a fix and flip property you found in a terrific location, and you are either an experienced real estate investor or a first-timer who wants to try out flipping houses. Expert house flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a gain of $40-$50k on average. And sure, they are helped in a big way via their professional know-how, auction skills and knowledge of hard money loans. Still, your rehab and renovation skills aren't bad either — besides, you have already found a suitable general contractor to take on this home.

But how do you obtain the necessary funding for flipping? When you get in touch with a standard lending institution, much like a bank for a mortgage loan, it can take, at a minimum, thirty to sixty days for the acceptance to be completed and your money to be distributed. With the sellers wanting a fast closing, that does not seem like a good option to you in the slightest.

On top of this, banks have already been tightening their lending requirements as of late, which makes it difficult for someone to receive a typical loan if their credit score is not perfect or he does not possess a consistent salaried occupation. So will a lack of funding stop you from pursuing your dream? Definitely not, because you also have the hard money loan alternative.

A hard money home loan in gives you what's probably most sought after by real estate investors — a fast closing time of as few as 2 weeks. And additionally, loan amounts can be done for up to 70% loan-to-value of the "as is" valuation, as deemed by a licensed appraiser. A number of people consider hard money real estate loans to be costlier than customary financing, because the interest rates of such loans often start at 10%. But the lengths of these loans tend to be fairly short, which means the interest rate is far less important. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, similar to every other expense associated with a project. When you have resold the house and have made a positive gain, you're able to get back this expense from the home — similar to recovering the money necessary for the brand-new kitchen appliances that you've installed.

In addition, even a person with low credit will be able to qualify for a hard money mortgage. The borrower's credit score is not the primary deciding factor for hard money lenders — in addition, they consider the piece of real estate, how much it is worth, its location, and its capability to earn back their investment if things do not work out as intended. The amount that an individual can put upfront for the house, how much experience he has in real estate investing, and selling price of comparative properties in the same neighborhood are additional factors that go into determining an individual's eligibility for a hard money real estate loan.

Finding a hard money lender in to finance your renovation project is not hard, so long as the opportunity that lies ahead of you is promising and has a strong prospect for returns. Complete the form on this page or give us a call to discuss your property or properties.