Imagine you've come across this truly good deal for a fix and flip property in a great neighborhood, and you are either an experienced real estate investor or a first-timer who really wants to try out flipping houses. Professional residential home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a profit of $40-$50k on the majority of projects. And yes, they are helped in a major way by their professional knowledge, auction expertise and familiarity with hard money loans. Having said that, you've also been developing your rehab and renovation skills, have a licensed contractor ready to go and are certain that you can do a great job on this property.

But where can you get the necessary funding for home flipping? When you approach a regular lender, much like a bank for financing, it can take, as a minimum, four to eight weeks for your acceptance to come through and the money to be furnished. So if you will be expecting a fast closing, you need to realize that this may cost you a couple of weeks, causing you to miss out on the home.

With banks introducing more challenging loan standards in recent times, it is more difficult for a self-employed person to get a mortgage loan, particularly if his credit rating is not perfect. So does that leave you with no other option, but to abandon your dream of venturing into home flipping? Certainly not, seeing as you always have the Lubbock hard money loan option.

A hard money home loan in Lubbock offers what's regarded as essential to most real estate transactions — a quick closing of just a 2-3 weeks and at times even less. Plus, the LTV value can go up to 70% of the home's valuation, as determined by a certified appraiser. Some individuals regard hard money real estate loans to be more costly than ordinary loans, because the lending rates for these loans normally start at 10%. But once you consider these are not long-term loans, the rate of interest can be misleading. Short-term loans of a couple of months to a few years are best looked at as cost of capital, much like every other financial outlay related to a project. Once you have sold the property or home and have made a good gain, you're able to reclaim this expense from the home — the same as recuperating the cost of brand-new home appliances that you installed.

Apart from this, hard money mortgages are not difficult to qualify for, even in the event you posses less-than-perfect credit. Instead of focusing primarily on the person's credit score or income, Lubbock hard money lenders, who could be a private company or an individual person, approve a loan as a result of analyzing the home value, its marketability, where it is located, and the possibility of getting back their capital in case they have to foreclose the loan. On top of this, if the borrower have proven experience in equivalent real estate ventures, can place down cash for the down payment, and the price of similar properties in the vicinity works in his favor, he will have a really good shot of being approved to get a hard money real estate loan.

Locating a hard money lender in Lubbock to cover expenses for your flipping business is not very challenging, as long as the opportunity that lies before you is promising and possesses a strong prospect for returns. Complete the contact form or call us and let's talk about the property or properties you have in mind.