Suppose that you've come across this really great deal on a fix and flip property you found in a great neighborhood, and you are either a seasoned real estate investor or a first-timer who wants to try his hand at flipping. Professional residential home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are capable of hauling in a gain of $40-$50k on average. And indeed, they are helped in a big way as a result of their professional know-how, auction expertise and knowledge of hard money loans. Nonetheless, your rehab and renovation skills aren't bad either — aside from that, you've already found a good licensed contractor to start this project.

But how can you find the needed financing for home flipping? If you go after a normal bank loan, you will have to wait around somewhere around 30-60 days until the financing is authorized and your funding is ready. Since the majority of home owners would prefer a fast closing, it may be advisable to begin seeking out some other funding alternatives.

With banks establishing tougher loan criteria in recent times, it is now more challenging for a self-employed person to obtain a mortgage loan, especially if his credit rating is not perfect. So does this leave you with no other option, but to give up your ambition of getting into home flipping? Never, because you could always use the Pilot Point hard money loan approach to pay for your rehab project.

A hard money home loan in Pilot Point offers you what's considered essential to many real estate deals — a fast closing of just a 2-3 weeks and sometimes even less. Plus, the LTV value can range up to 70% of the property value, as determined by a certified appraiser. Some individuals believe hard money real estate loans to be more expensive than standard financing, because the interest rates for these loans usually start at 10%. But when you consider these loans are not long-term loans, the rate may be misleading. As it pertains to short-term loans of a few years or even less, you should look at them much like you would other expenses for the project. Once you've resold the property or home and have made a successful profit, you'll be able to reclaim this expense from the house — just like recuperating the money necessary for the brand-new appliances for the kitchen that you have put in.

Moreover, even an individual with low credit can still qualify for a hard money mortgage. The customer's credit score isn't the sole determining factor for Pilot Point hard money lenders — they also examine the home, what is it valued at, its location, and its capability to earn back their financial commitment if everything does not work out as planned. Other variables that impact an applicant's approval for a hard money real estate loan include what amount of money he is able to put towards a down payment, his past experience as a real estate investor, and selling price of similar, just recently sold homes nearby.

So any time you come across a really good and worthwhile flipping opportunity, be assured you will have a hard money lender in Pilot Point, equipped to loan you the money you may need. Enter your info into the contact form or get in touch with us via phone to talk about the project you have in mind.