There is this outstanding opportunity to renovate and flip this nice old property in a fantastic part of town and it seems a lot like the deal you've been expecting for quite some time. You've heard that competent home flippers, much like the couple on HGTV's Flip or Flop, enjoy a remarkable average return close to $40,000 – $50,000. And indeed, they are aided in a major way due to their professional experience, auction expertise and knowledge of hard money loans. Having said that, you have also been brushing up your rehab and renovation knowledge, have a very good contractor ready to go and are confident that you will be able to do an impressive job on this house.

But where do real estate investors obtain funds? If you approach a standard lender, much like a bank for a mortgage loan, it's in all likelihood going to take at least 30-60 days for the acceptance to come through and your money to be dispersed. Given that home owners wish to have a fast closing, you might need to start searching for some other funding options.

Moreover, if you have an unfavorable credit score or do not have a regular source of income, it may be harder to obtain a bank loan, seeing the stricter loan requirements banks have introduced recently. So do you have to stop trying and forego your aspiration to embark into fix and flips? Certainly not, given that you always have the hard money loan alternative.

A hard money home loan in offers what's deemed essential to most real estate transactions — a fast closing of only a few weeks and more often than not less. Further, loans can be done for up to 70% loan-to-value of the as-is property's valuation, as established by a qualified appraiser. Some people believe hard money real estate loans to be more pricey than customary loans, because the lending rates of such loans usually start out at 10%. But usually, the lending rate isn't as pertinent for these loans, because they will never be long-term financing. The price of such short-term loans ought to be viewed much like every other expenditure that you will encounter during the project. Right after you renovate and resell the home, recovering this expense is the same as recouping the cost of the stainless steel appliances you installed in the place.

Aside from that, hard money mortgages are not hard to qualify for, even when you have a low credit rating. hard money lenders don't authorize a loan exclusively judging by the person's credit score — rather they also evaluate the home, where it is located and how much it is worth, and the home's capability to pay back the loan on its own. The total amount that a person can put upfront towards the property, how much experience he has in real estate investments, and price range of comparable homes in the area are additional factors that go into establishing an individual's eligibility for a hard money real estate loan.

So in case you have stumbled on a wonderful fixer-upper with a huge chance of returns, you have also stumbled upon a hard money lender in that's ready to provide funding for your rehab projects. Complete the contact form on this page or call us and let's discuss the project you have in mind.