Suppose you've run into this excellent bargain on a fix and flip property you found in a terrific location, and you happen to be either an experienced real estate investor or a newbie who really wants to try out flipping houses. You may have heard that veteran house flippers, much like the couple on HGTV's Flip or Flop, turn a remarkable average return close to forty to fifty thousand dollars. And indeed, they are aided in a big way due to their professional experience, auction expertise and familiarity with hard money loans. Nonetheless, your rehab and remodeling knowledge isn't bad either — besides, you have already identified a suitable general contractor to handle the project.

But money is a different issue entirely. A typical lender, for instance a bank, takes a minimum of one to two months to consent to the mortgage and hand over the cash. With all the sellers wanting a fast closing, that doesn't seem like a great idea to you whatsoever.

What's more, if you have a sub-optimal credit situation or do not receive a conventional source of income, it is usually more difficult to obtain a bank loan, seeing the more stringent loan criteria banks have put in place in recent times. So does that leave you with no option, but to drop your dream to venture into the fix and flip business? Most certainly not, because you also have the Orange hard money loan option.

If you decide to put in an application for a hard money home loan in Orange, you have access to what's perhaps most essential to real estate transactions throughout the country — a quick closing of about two weeks. In addition, the LTV value can go up to 70% of the home's valuation, as determined by a competent appraiser. With the interest rates starting out around 10%, hard money real estate loans might appear, at first glance, to be more expensive as compared with conventional bank financing. But the lengths of these loans are rather short, which makes the rate far less significant. Short-term loans of a couple months to a handful of years are best understood as cost of capital, much like all other expenditures involved with a project. And once you've turned the property or home, recovering this expense is comparable to recuperating the expense for all the kitchen and bath improvements you did.

In addition, even someone with bad credit can still qualify for a hard money mortgage. Orange hard money lenders do not take on a loan exclusively based on the borrower's credit score — rather they additionally analyze the home, its value and location, and the property's capability to pay back the loan by itself. Several other factors that influence a customer's acceptance for a hard money real estate loan can include what amount of money he can put towards a down payment, his past experience as a real estate investor, and price range of comparative, just recently sold homes in the area.

If you happen to have found a wonderful real estate opportunity with a significant potential for returns, you've also discovered a hard money lender in Orange that is ready to provide funding for your flipping projects. Submit the contact form on this page or get in touch with us via phone and let's talk about your property or properties.