Suppose that you've come across this really great bargain for a fix and flip property you found in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who wants to try his hand at flipping. Many people know that knowledgeable professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can readily earn an average profit of $40,000 to $50,000 on their flips. And yes, they are helped in a big way due to their professional knowledge, auction skills and understanding of hard money loans. Still, your rehab and remodeling skills aren't that bad either — in any case, you have already identified a suitable contractor to take on this job.

But where do you get the necessary capital for home flipping? A traditional lending institution, say for example a bank, takes at least 1-2 months to consent to the mortgage and provide the capital. Thus if you happen to be looking for a fast closing, you must recognize that this may cost you a few weeks, making you miss out on the opportunity.

With banks introducing tougher loan standards in the last few years, it's become more difficult for a self-employed individual to find a mortgage loan, particularly if his credit rating is not optimal. So will a shortage of funds keep you from sticking with your ambitions? Never, due to the fact you could always use the Selma hard money loan approach to fund your rehab project.

If you put in an application for a hard money home loan in Selma, you're going to get what is perhaps most vital to real estate transactions across the country — a very fast closing of approximately 2 weeks. Further, financing is made up to 70% loan-to-value of the as-is value, as established by a qualified appraiser. With lending rates starting off around 10%, hard money real estate loans may seem, initially, to be more costly when compared with traditional bank financing. But the time frames of these loans tend to be fairly short, which means the interest rate is much less significant. When it comes to short-term loans of one or two years or less, you should think about them identical to every other expense for your project. Right after you rehab and sell the home, recuperating this expense is just like recouping the money you spent for stainless steel appliances you placed into the home.

Besides, hard money mortgages are not difficult to qualify for, whether or not you have got very bad credit. Selma hard money lenders don't approve a loan strictly according to the person's credit score — rather they additionally assess the property or home, its value and location, and the property's ability to pay back the financing by itself. The amount that a borrower can put down beforehand for the house, his past real estate experience, and price range of equivalent properties in the same neighborhood are various other factors that go into determining an applicant's eligibility for a hard money real estate loan.

So any time you run into a good and worthwhile flipping opportunity, rest assured you will have a hard money lender in Selma, equipped to loan you the cash you'll need. Complete the form on this page or give us a call and let's discuss the property you have in mind.