There is this amazing opportunity to fix and flip this nice outdated condo in a very good area and it looks like the deal you've been expecting for quite a while. Everybody knows that expert professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can readily turn a typical profit margin of $40,000 to $50,000 in their rehab business. Naturally, you also realize that their results are credited to the fact that they're experts, are well versed in hard money loans, they know the market really well and they also know how to work a public auction to buy their properties at a good price. Having said that, you have recently been cultivating your rehab and renovation knowledge, have a general contractor ready to go and are certain that you can do an impressive job on this house.

But funding is a separate question entirely. For those who approach a standard lender, such as a bank for a mortgage loan, it's likely going to take, at the very least, 4-8 weeks for your acceptance to be completed and the funds to be sent out. So if you happen to be expecting a fast closing, you must understand or know that this could set you back by a few weeks, making you miss out on the house.

On top of this, banks have already been tightening up their lending requirements in recent times, rendering it more challenging for someone to obtain an ordinary home loan if their credit score is not perfect or he does not possess a regular salaried profession. So will a shortage of financing keep you from pursuing your dream? Never, because you can always go the hard money loan route to finance your home renovating project.

Should you get a hard money home loan in , you have access to what is perhaps most essential to real estate negotiations throughout the country — a quick closing of roughly a couple weeks. Aside from that, financing can be done for up to 70% loan-to-value of the as-is house's valuation, as deemed by a licensed appraiser. With the rates starting out near 10%, hard money real estate loans might appear, at first, to be more costly as compared with conventional bank financing. But once you understand these are not long-term mortgage loans, the interest rate can be misleading. Short-term loans of several months to a handful of years are best looked at as cost of capital, the same as all other costs related to a project. After you fix up and unload the house, recovering this expense is just like recovering the one for stainless steel appliances you placed into the house.

Also, it is simple to be eligible for a a hard money mortgage, regardless of whether your credit rating is not that superb. hard money lenders don't approve a loan strictly judging by the borrower's credit score — instead they also analyze the property, its location and value, and the property's capacity to pay back the loan without the assistance of the borrower. How much an individual can put down beforehand for the property or home, his real estate experience, and selling price of comparable properties in the same area are other factors that go into determining a person's qualification for a hard money real estate loan.

If you happen to have stumbled on a really great real estate opportunity with a high probability of returns, you've also found yourself a hard money lender in who's happy to provide funding for your fix and flip venture. Submit the contact form on this page or call us and let's talk about your project.