You discovered this outstanding opportunity to rehab and flip this nice outdated property in a very good part of town and it looks a lot like the one you've been looking forward to for a long time. Most folks know that capable professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, are able to turn an average profit margin of forty to fifty thousand dollars when they rehab properties. It's fair to say their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction talents have been major factors to their success. Nevertheless, you are convinced that your first class rehab and remodeling abilities will help you do a superb job on this property — in addition, you've already lined up one of the finest building contractors in the business to take care of this job.

But how can you get the needed funding for flipping? A typical lending institution, say for example a bank, takes a minimum of 1-2 months to consent to the loan and provide the money. Given that sellers prefer a fast closing, it may be best to start seeking out additional funding alternatives.

To add to it, banks have already been tightening their lending standards as of late, rendering it more tough for people to get a conventional loan if their credit score is not perfect or he is lacking a consistent salaried occupation. So does that leave you with no other option, but to drop your ambition of getting into rehabbing? Never, due to the fact you can always go the Magnolia hard money loan route to fund your rehab project.

A hard money home loan in Magnolia can provide what is deemed essential to many real estate sales — a quick closing of just a couple of weeks and at many times less. Additionally, financing is made up to 70% loan-to-value of the as-is house's valuation, as calculated by a licensed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as more costly than bank lending products. But usually, the lending rate is not as relevant for these loans, since they will never be long-term loans. Short-term loans of a couple months to a few years are best approached in terms of cost of capital, similar to any other financial outlay in connection with a project. And once you have finally sold the home, recovering this expense is identical to recouping the expense for the bathroom or other improvements you did.

In addition, even someone with low credit can still qualify for a hard money mortgage. Rather than focusing entirely on the borrower's credit score or wages, Magnolia hard money lenders, who can be a privately owned company or an individual, say yes to a loan as a result of analyzing the home value, ease of marketability, where it is located, and the odds of recovering their money in the event of foreclosure. Several other criteria that impact a customer's eligibility for a hard money real estate loan include how much he can put towards a down payment, his previous experience as a real estate investor, and price of comparable, recently sold homes nearby.

So in the event you come across a good and profitable investment opportunity, relax knowing you'll have a hard money lender in Magnolia, prepared to lend you the cash you will need. Complete the form or call us and let's talk about the project you have in mind.