An outstanding deal on a fix and flip property located in an excellent area of the city all of a sudden shows up — seems too good to be true. Everybody knows that capable professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, are able to turn an average profit margin of forty to fifty thousand dollars when they rehab properties. Undoubtedly, you also recognize that their great results are attributed to the simple fact that they are industry experts, are knowledgeable in hard money loans, they understand the market really well and they also are good at working a public auction to buy their homes at a reasonable price. Still, your rehab and renovation skills aren't bad either — in any case, you've already found a good licensed contractor to tackle the project.

But money is often a separate question entirely. A typical lender, like for example a bank, takes a minimum of one to two months to approve the financing and deliver the capital. So if you are expecting a fast closing, it is important you understand or know that this will set you back by a few weeks, causing you to miss out on the house.

As well as this, in case you have an unfavorable credit situation or don't receive a routine income source, it is usually more difficult to obtain bank financing, with the tougher loan criteria banks have introduced of late. So does that mean you are without an option, but to abandon your ambition to venture into the fix and flip business? Certainly not, considering that you could always use the Shavano Park hard money loan approach to fund your flipping project.

A hard money home loan in Shavano Park gives you what is perhaps most desired by real estate investors — a quick closing in as few as 2 weeks. Additionally, loan amounts can be made up to 70% loan-to-value of the as-is property's valuation, as deemed by a professional appraiser. With interest rates starting out near 10%, hard money real estate loans may appear, at first glance, to be more expensive as compared with traditional bank lending products. But if you appreciate that these loans are not long-term home loans, the rate tends to be misleading. The price of such short-term loans ought to be looked at much like any other cost that you might encounter during the project. Once you've sold the property or home and have made a positive financial gain, you'll be able to reclaim this expense from the house — the same as recouping the money spent on the brand-new kitchen appliances that you've installed.

Additionally, it's simple to qualify for a hard money mortgage, even if your credit rating is not that extraordinary. Instead of focusing exclusively on the person's credit score or source of income, Shavano Park hard money lenders, who may be a privately owned company or an individual person, approve a loan after assessing the property value, how easy it will be to market, its location, and the probability of recuperating their capital in case of foreclosure. How much of their own money a borrower can put down beforehand towards the property or home, how much practical experience he has in real estate investing, and selling price of comparative properties in the neighborhood are various other details that go into establishing an individual's suitability for a hard money real estate loan.

Locating a hard money lender in Shavano Park to finance your renovation project is not very challenging, as long as the opportunity in front of you is promising and offers a good prospect for returns. Complete the contact form or give us a call to discuss the property or properties you have in mind.