There is this phenomenal opportunity to fix and flip this wonderful outdated home in a fantastic location and it looks a lot like the one you have been expecting for quite some time. Expert home flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are able to haul in a gain of $40-$50k on average. Naturally, you also know that their success are due to the fact that they are professionals, are well versed in hard money loans, they understand market trends quite well and additionally, they know how to work an auction for getting a good deal. However, you are certain that your impressive rehab and renovation abilities will help you do an outstanding job for this house — in addition, you already have lined up one of the premier contractors in the business to take care of the job.

But money can be a separate issue altogether. In the event you get in touch with a standard lender, much like a bank for a mortgage loan, it can take, as a minimum, 30-60 days for your acceptance to be completed and the money to be distributed. With the sellers seeking a fast closing, that does not appear like a good option to you whatsoever.

With banks establishing harder loan criteria in the past several years, it is now tougher for a self-employed individual to obtain a mortgage loan, especially when his credit situation is not optimal. So does that leave you with no other option, but to give up your dream of getting into home renovating? Under no circumstances, especially while hard money loans can help you achieve great things in real estate.

A hard money home loan in gives you what's possibly most desired by real estate investors — a very fast closing time period of as little as two weeks. Also, hard money lenders can do funding up to 70% LTV of the property or home value, as established by a licensed third-party appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as more pricey than bank loans. But when you understand these loans are not long-term loans, the rate of interest tends to be misleading. Short-term loans of a couple months to a handful of years are best approached in terms of cost of capital, similar to any other expense associated with a project. Once you have turned the home and have made a positive profit, you'll be able to reclaim this expense from the property — just like recouping the money spent on the brand-new kitchen appliances that you have installed.

Apart from this, hard money mortgages are easy qualifying, even in the event you posses very bad credit. hard money lenders do not authorize a loan solely based on the borrower's credit score — instead they will assess the property or home, its valuation and location, and the home's ability to pay back the financing on its own. The total amount that a borrower can put down in advance towards the house, how much practical experience he has in real estate investments, and selling price of comparable properties in the vicinity are additional details that go into determining an applicant's qualification for a hard money real estate loan.

So in the event you run into a really good and worthwhile investment opportunity, rest assured you will have a hard money lender in , willing to lend you the funds you'll need. Fill out the contact form or give us a call and let's discuss the property or properties you have in mind.