There is this outstanding opportunity to fix and flip this nice outdated house in a fantastic part of town and it looks a lot like the one you have been looking forward to for quite some time. You've probably heard that professional house flippers, similar to the married couple on HGTV's Flip or Flop, turn a remarkable average profit margin close to $40,000 – $50,000. Of course, you also understand that their successes can be attributed to the simple fact that they're professionals, are knowledgeable in hard money loans, they understand market trends quite well and in addition, they are good at working an auction for getting a reasonable deal. Nevertheless, you're convinced that your superb rehab and renovation skills will help you do a quality job on the house — furthermore, you already have lined up one of the most sought after building contractors in town to work on this project.

But where do you find the necessary capital for flipping? A traditional lender, like for example a bank, takes at a minimum one to two months to consent to the loan and release the capital. Considering that all the sellers want a fast closing, that does not seem like a good idea to you whatsoever.

With banks establishing more challenging loan requirements in the recent past, it is now harder for a self-employed person to find a home loan, especially if his credit rating is not flawless. So does this leave you with no option, but to give up your aspiration of venturing into flipping? Certainly not, considering that you could always go the hard money loan route to finance your rehab project.

A hard money home loan in can provide what's deemed essential to many real estate deals — a very fast closing of only a few weeks and sometimes even less. In addition, the LTV value can range up to 70% of the property's valuation, as estimated by a competent appraiser. Some individuals regard hard money real estate loans to be more pricey than regular loans, considering interest rates of such loans generally start out at 10%. But if you appreciate that these loans are not long-term mortgage loans, the interest rate tends to be misleading. The price tag on such short-term loans should be considered on par with every other expenditure that you would have to meet for the project. And as soon as you have turned the property, recouping this expense is identical to recovering the expense for the kitchen and bath upgrades you performed.

Apart from this, hard money mortgages are not hard to qualify for, even if you posses less-than-perfect credit. The applicant's credit score is not the exclusive determining factor for hard money lenders — they also evaluate the property, what is it valued at, where it is located, and its ability to earn back their investment if things should not work out as planned. On top of that, if the individual can demonstrate past experience in equivalent real estate projects, can put down cash towards the down payment, and the price of similar houses in the neighborhood works to his benefit, he will have a good shot of being eligible to get a hard money real estate loan.

Finding a hard money lender in to finance your fix and flip endeavor is not difficult, as long as the opportunity that lies before you is promising and offers a strong potential for returns. Complete the form on this page or give us a call and let's talk about the property or properties you have in mind.