There's this phenomenal opportunity to fix and flip this wonderful old property or home in a good area and it looks a lot like the deal you have been wanting for quite a while. Everybody knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can earn an average profit margin of $40,000 to $50,000 on their home projects. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction skills have played an important role in their success. Still, your rehab and remodeling knowledge isn't that bad either — aside from that, you have already found a suitable licensed contractor to handle this job.

But how do you find the necessary funding for home flipping? A typical lending institution, say for example a bank, takes at least one to two months to consent to the mortgage and provide the capital. Considering that all the home owners want a fast closing, that doesn't seem like a wise idea to you in the slightest.

Moreover, for those who have an unfavorable credit situation or don't receive a regular income, it may be harder to qualify for bank financing, considering the tighter loan requirements banks have issued in recent times. So does this mean you are without an option, but to drop your aspiration of venturing into home flipping? Absolutely not, seeing as you always have the Pasadena hard money loan option.

A hard money home loan in Pasadena gives you what is deemed vital to many real estate transactions — a very fast closing of just a few weeks and at many times less. Aside from that, loans can be done for up to 70% loan-to-value of the as-is home's valuation, as deemed by a professional appraiser. With interest rates starting at about 10%, hard money real estate loans may appear, initially, to be more costly when compared with conventional bank loans. But if you appreciate that these are not long-term home loans, the rate of interest can be misleading. Short-term loans of a couple months to a handful of years are best thought of in terms of cost of capital, very much like any other expenditure associated with a project. Right after you rehab and unload the house, recovering this expense is no different than recovering the money you spent for home appliances you installed in the property.

Apart from this, hard money mortgages are easy qualifying, even in the event you have less-than-perfect credit. As an alternative for focusing entirely on the borrower's credit score or net income, Pasadena hard money lenders, who may be a privately owned company or an individual person, say yes to a loan after evaluating the property value, how easy it will be to market, where it is located, and the odds of getting back their capital in case of foreclosure. The amount that a borrower can put down beforehand for the property or home, how much experience he has in real estate investing, and price range of comparable properties in the same vicinity are other factors that go into determining a borrower's qualification for a hard money real estate loan.

So should you come across a really good and profitable flipping opportunity, relax knowing you'll have a hard money lender in Pasadena, able to loan you the capital that you need. Submit the form on this page or call us to discuss your property or properties.