There's this outstanding opportunity to fix and flip this wonderful out of date property or home in a good location and it seems a lot like the deal you have been eagerly waiting on for quite some time. Expert home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a profit of $40-$50k on the majority of projects. And without a doubt, they are aided in a major way via their professional know-how, auction skills and familiarity with hard money loans. Having said that, you've also been brushing up your rehab and remodeling skills, have a licensed contractor arranged and are positive that you're capable of doing a stellar job for this property.

But how can you obtain the needed capital for home flipping? If you go after a regular loan from the bank, you will have to wait roughly 30-60 days before the mortgage is authorized and your money is available. Considering that all the sellers are seeking a fast closing, that doesn't seem like a wise idea to you at all.

With banks introducing harder loan standards in the past several years, it is now much harder for a self-employed individual to get a home loan, especially if his credit circumstances are not perfect. So does this mean you are without an option, but to give up your dream of venturing into the fix and flip business? Absolutely not, seeing as you always have the hard money loan alternative.

A hard money home loan in offers you what is viewed as imperative to most real estate sales — a quick closing of only a couple of weeks and sometimes even less. Besides that, hard money lenders frequently agree to loans up to 70% LTV of the property or home value, as established by a credentialed third-party appraiser. With the interest rates starting near 10%, hard money real estate loans may look, at first, to be more costly as compared with traditional bank lending products. But in reality, the rate of interest is not as pertinent for these loans, since they are not long-term loans. The cost of such short-term loans ought to be evaluated much like every other expenditure that you will have to meet for the project. Once you have resold the property and have made a positive gain, you'll be able to get back this expense from the property — similar to recovering the money spent on the brand-new home appliances that you've put in.

Besides, hard money mortgages are easy qualifying, even if you have got below-average credit. The person's credit score is not the exclusive deciding factor for hard money lenders — in addition, they analyze the home, what is it valued at, its location, and its potential to bring back their investment if things do not work out as planned. How much of their own money an applicant can put upfront for the property or home, his past real estate experience, and price range of comparative properties in the same vicinity are additional details that go into ascertaining an applicant's eligibility for 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 found yourself a hard money lender in who's willing to finance your rehab venture. Fill out the contact form or get in touch with us via phone to talk about the property or properties you have in mind.