Suppose that you've encountered this really great deal on a fix and flip property you found in a great neighborhood, and you are either a seasoned real estate investor or a first-timer who is looking to try his hand at flipping. You've heard that veteran property flippers, much like the married couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin near forty to fifty thousand dollars. And sure, they are helped in a big way via their professional experience, auction expertise and familiarity with hard money loans. Having said that, you have also been brushing up your rehab and remodeling skills, have a licensed contractor arranged and are positive that you will be able to do an impressive job on this house.

But where can you find the needed capital for flipping? A conventional lender, say for example a bank, takes no less than 1-2 months to authorize the mortgage and release the funds. So if you happen to be wishing for a fast closing, you have to understand or know that this will cost you a couple weeks, making you lose out on the opportunity.

Furthermore, should you have a sub-optimal credit situation or don't have a consistent income, it is usually tougher to be eligible for a a bank loan, seeing the stricter loan criteria banks have introduced in recent times. So should you give up and forego your dream to venture into the real estate market? Definitely not, given that you always have the hard money loan alternative.

A hard money home loan in provides you with what is probably most sought after by real estate investors — a fast closing time of as few as two weeks. Additionally, loan amounts can be made up to 70% loan-to-value of the "as is" valuation, as established by a qualified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank financing. But when you consider these are not long-term mortgage loans, the interest rate can be misleading. Short-term loans of several months to a handful of years are best looked at as cost of capital, similar to any other financial outlay involved with a project. Right after you rehab and resell the property, recovering this expense is no different than recouping the money you spent for stainless steel appliances you installed in the place.

Also, it isn't difficult to be eligible for a a hard money mortgage, regardless of whether your credit rating is not that extraordinary. Rather than focusing solely on the borrower's credit score or net income, hard money lenders, who could be a privately owned company or an individual person, say yes to a loan as a result of analyzing the home value, ease of marketability, its location, and the probability of getting back their money should they have to foreclose the loan. How much a person can put down beforehand towards the property or home, how much practical experience he has in real estate investments, and price range of equivalent homes in the same vicinity are additional factors that go into ascertaining an individual's qualification for a hard money real estate loan.

Locating a hard money lender in to fund your renovation project is not very challenging, so long as the opportunity that lies ahead of you is promising and possesses a good prospect for returns. Submit the form or call us and let's discuss the property or properties you have in mind.