Suppose you've come across this truly good bargain for a fix and flip property in a great neighborhood, and you are either a seasoned real estate investor or a newbie who really wants to try out flipping houses. Professional property flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a profit of forty to fifty grand on most projects. Undoubtedly, you also are aware that their success can be attributed to the simple fact that they're industry experts, are proficient in hard money loans, they understand the marketplace quite well and they also know how to work an auction for getting an appropriate price. With that being said, you have also been developing your rehab and remodeling knowledge, have got a licensed contractor ready for the project and are certain that you can do a great job on this house.

But where can you obtain the needed funding for flipping? A traditional lending institution, like for example a bank, takes at least 1 to 2 months to approve the loan and release the capital. With the home owners looking for a fast closing, that does not appear like a wise idea to you at all.

With banks adding tougher loan criteria in the past few years, it is now harder for a self-employed person to find a home loan, especially when his credit circumstances are not flawless. So must you admit defeat and forego your desire to embark into real estate? Under no circumstances, especially while Richland Hills hard money loans enable you to realize great things in the real estate world.

A hard money home loan in Richland Hills can provide what is deemed crucial to many real estate deals — a fast closing of just a 2-3 weeks and at times even less. What's more, the LTV value can reach up to 70% of the home value, as evaluated by a competent appraiser. A number of people regard hard money real estate loans to be more pricey than ordinary loans, since the interest rates for such loans commonly start out at 10%. But once you consider these loans are not long-term home loans, the interest rate may be misleading. The price tag on such short-term loans should be viewed on par with any other financial outlay that you will encounter during the project. When you have resold the home and have made a positive gain, you can get back this expense from the property — similar to recuperating the money necessary for the brand-new appliances for the kitchen that you put in.

Aside from that, hard money mortgages are not hard to qualify for, even when you have bad credit. Richland Hills hard money lenders do not take on a loan exclusively based on the applicant's credit score — instead they additionally look at the property, its valuation and location, and the property's capacity to pay back the financing on its own. Adding to this, if the applicant have proven experience in similar real estate projects, can place down cash for a down payment, and the value of equivalent houses in the vicinity works in his favor, he has an excellent likelihood of qualifying for a hard money real estate loan.

So if you have found a really great home to flip with a huge prospect of returns, you have also discovered a hard money lender in Richland Hills who is willing to provide financing for your rehab ventures. Complete the contact form on this page or get in touch with us via phone and let's discuss the property or properties you have in mind.