Imagine you've come across this excellent deal for a fix and flip property located in an ideal neighborhood, and you're either an experienced real estate investor or a newbie who really wants to try out flipping homes. You've probably heard that professional property flippers, such as the married couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin near $40,000 – $50,000. And indeed, they are helped in a big way by their professional experience, auction abilities and knowledge of hard money loans. With that being said, you have recently been developing your rehab and remodeling skills, have a very good building contractor ready to go and are positive that you can do a great job on this home.

But where can you get the necessary funding for home flipping? For those who apply for a regular loan via a bank, you will wind up waiting around roughly 30-60 days up until the time the mortgage is approved and your funds are accessible. So if you're expecting a fast closing, it is important you recognize that this will cost you a few weeks, causing you to miss out on the house.

Furthermore, for those who have a sub-optimal credit rating or don't receive a conventional income source, it can be more difficult for you to obtain a bank loan, seeing the more stringent loan criteria banks have introduced in recent times. So should you give up and abandon your aspiration to venture into real estate? Absolutely not, seeing as you always have the Primera hard money loan option.

A hard money home loan in Primera boasts what's probably most crucial to real estate investors — a very fast closing time of as little as fourteen days. Plus, the LTV value can reach up to 70% of the property's valuation, as determined by a competent appraiser. With loan rates starting off at about 10%, hard money real estate loans might seem, at first, to be higher in price as compared with traditional bank lending products. But when you understand these loans are not long-term home loans, the rate of interest can be misleading. As it pertains to short-term loans of one or two years or less, you should think of them identical to any kind of other expenditure for your project. Once you've turned the home and have made a successful financial gain, you're able to recoup this expense from the property or home — very much like recovering the cost of brand-new home appliances that you installed.

Apart from this, hard money mortgages are easy qualifying, regardless if you posses a bad credit rating. Instead of focusing only on the applicant's credit score or net income, Primera hard money lenders, who can be a private company or an individual, approve a loan as a result of assessing the home value, how easy it will be to market, its location, and the probability of recuperating their money in case of foreclosure. How much an individual can put down beforehand towards the house, how much experience he has in real estate investing, and price range of comparable homes in the vicinity are various other details that go into establishing an individual's eligibility for a hard money real estate loan.

Locating a hard money lender in Primera to fund your renovation project is not difficult, so long as the opportunity that lies before you is promising and offers a good potential for returns. Submit the form on this page or give us a call and let's talk about the property or properties you have in mind.