There's this phenomenal opportunity to fix and flip this wonderful out of date property or home in a fantastic location and it seems like the deal you have been looking forward to for quite a while. You may have heard that competent home flippers, such as the husband and wife on HGTV's Flip or Flop, turn an impressive average return of around forty to fifty thousand dollars. And indeed, they are aided in a major way by their professional knowledge, auction expertise and knowledge of hard money loans. Nonetheless, your rehab and remodeling skills aren't that bad either — besides, you have already identified an ideal contractor to handle the job.

But funding is usually a different problem altogether. For those who opt for a conventional loan via a bank, you will need to wait around approximately one to two months up until the money is approved and your money is readily available. With all the sellers seeking a fast closing, that does not appear like a good option to you whatsoever.

Moreover, in case you have a less-than-perfect credit rating or don't receive a regular income source, it is normally tougher for you to obtain bank financing, considering the tighter loan criteria banks have introduced in recent times. So does that leave you with no other option, but to give up your aspiration of venturing into the fix and flip business? Certainly not, given that you always have the hard money loan option.

A hard money home loan in gives you what is probably most desired by real estate investors — a very fast closing time of as little as fourteen days. And additionally, loans are made up to 70% loan-to-value of the as-is house value, as deemed by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank loans. But the term lengths for these loans are quite short, which makes the interest rate less important. When it comes to short-term loans of 1 or 2 years or even less, you should think about them identical to any kind of other expense for the project. When you have turned the property and have made a positive return, you can get back this expense from the house — very much like recovering the money spent on the brand-new home appliances that you have put in.

Furthermore, even an individual with bad credit can easily be eligible for a hard money mortgage. Rather than focusing only on the applicant's credit score or source of income, hard money lenders, who could be a privately owned company or an individual person, authorize a loan after assessing the property value, its salability, where it is located, and the odds of recovering their money should they have to foreclose the loan. On top of this, if the applicant have proven experience in comparable real estate projects, can place down cash towards the down payment, and the price of comparable houses in the neighborhood works in his favor, he will have a very good likelihood of being approved to obtain a hard money real estate loan.

So if you have found an excellent home to flip with a huge prospect of returns, you've also discovered a hard money lender in who is willing to fund your rehab ventures. Fill out the contact form on this page or get in touch with us via phone to talk about the property or properties you have in mind.