Suppose you've encountered this truly good deal for a fix and flip property you found in an ideal neighborhood, and you happen to be either a skilled real estate investor or a newbie who really wants to try out flipping houses. Professional residential home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping series, are able to bring in a profit of $40-$50k as an average on more than one occasion. It goes without saying their rehabbing experience, understanding of hard money loans, expertise in their market, and auction talents have played an important part in their successes. Nonetheless, your rehab and remodeling skills aren't that bad either — in any case, you've already located a suitable general contractor to take on the project.

But financing is a separate issue altogether. A typical lender, for instance a bank, takes at a minimum 1-2 months to approve the loan and hand over the monies. Considering that all the sellers want a fast closing, that does not seem like a great idea to you at all.

Moreover, in case you have an unfavorable credit score or do not have a regular source of income, it usually is more challenging to qualify for bank financing, considering the tighter loan requirements banks have issued lately. So does that mean you have no option, but to abandon your dream of venturing into flipping? Never, due to the fact you could always go the Rincon hard money loan route to fund your home renovating project.

If you should apply for a hard money home loan in Rincon, you have access to what's probably most vital to real estate offers throughout the country — a very fast closing of around 14 days. What's more, the LTV value can go up to 70% of the property's valuation, as determined by a certified appraiser. Some people consider hard money real estate loans to be more expensive than ordinary loans, since the interest rates of such loans commonly start at 10%. But once you appreciate that these are not long-term loans, the rate tends to be misleading. When it comes to short-term loans of 1 or 2 years or even less, you should think about them much like you would other expenditures for the project. After you rehab and sell the property, recuperating this expense is just like recovering the one for stainless steel appliances you put in the property.

Aside from that, hard money mortgages are not difficult to qualify for, whether or not you posses less-than-perfect credit. Rincon hard money lenders don't approve a loan solely according to the customer's credit score — instead they will evaluate the home, where it is located and what it is worth, and the home's capability to pay back the loan independent of the applicant. Several other factors that affect an individual's approval for a hard money real estate loan can include the amount he is able to put towards a down payment, his prior experience being a real estate investor, and price of comparative, fairly recently sold residences nearby.

So any time you run into a really good and worthwhile flipping opportunity, rest assured you'll have a hard money lender in Rincon, prepared to loan you the capital you need. Fill out the form on this page or give us a call to discuss the property you have in mind.