Imagine you've encountered this really great bargain on a fix and flip property you found in a great location, and you are either a seasoned real estate investor or a newbie who really wants to try out flipping homes. Most folks know that capable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to turn an average profit margin of forty to fifty thousand dollars on their flips. And indeed, they are helped in a major way by their professional experience, auction expertise and knowledge of hard money loans. Still, your rehab and remodeling knowledge isn't that bad either — besides, you've already identified an ideal licensed contractor to handle the project.

But where do you find the needed capital for home flipping? Should you opt for a normal loan from the bank, you will end up waiting around roughly 1-2 months up until the money is approved and the funding is available. Since the majority of sellers wish to have a fast closing, you may want to begin seeking out some other funding options.

Furthermore, if you have an unfavorable credit rating or don't receive a conventional income, it can be more challenging for you to be eligible for a bank loan, with the tighter loan criteria banks have issued in recent times. So will a lack of financing prevent you from pursuing your aspirations? Certainly not, on the grounds that you could always use the hard money loan approach to finance your flipping project.

A hard money home loan in boasts what's perhaps most important to real estate investors — a very fast closing time of as little as fourteen days. Also, hard money lenders can approve loans up to 70% LTV of the property's valuation, as identified by a certified third-party evaluation. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as more expensive than bank lending products. But the time frames of these loans are relatively shorter, which makes the interest rate less important. As it pertains to short-term loans of a handful of years or less, you should look at them much like you would other expenses for the project. After you renovate and sell off the home, recovering this expense is just like recouping the cost of the stainless steel appliances you installed in the home.

What's more, it is simple to obtain a hard money mortgage, even if your credit rating is not that superb. As an alternative for focusing primarily on the applicant's credit score or source of income, hard money lenders, who may be a private company or an individual person, say yes to a loan as a result of assessing the property value, its salability, where it is located, and the probability of recuperating their money in case of foreclosure. Adding to that, if the applicant have proven experience in equivalent real estate projects, can place down cash towards a down payment, and the price of comparable homes in the neighborhood works in his favor, he stands a really good likelihood of being eligible to get a hard money real estate loan.

If you happen to have stumbled upon a really good fixer-upper with a significant probability of returns, you have also discovered a hard money lender in that is willing to fund your flipping project. Fill out the form on this page or get in touch with us via phone and let's talk about the property or properties you have in mind.