Imagine you've stumbled upon this truly good bargain on a fix and flip property in a great location, and you are either a seasoned real estate investor or a newbie who wants to try his hand at flipping. You may have heard that professional house flippers, similar to the couple on HGTV's Flip or Flop, enjoy a remarkable average profit close to forty to fifty thousand dollars. And without a doubt, they are aided in a major way as a result of their professional experience, auction abilities and knowledge of hard money loans. Nevertheless, you are convinced that your first class rehab and remodeling skills will help you do a great job for this property — in addition, you already have lined up one of the most suggested contractors in the area to work on the project.

But financing can be a separate issue altogether. A standard lender, say for example a bank, takes at least one to two months to authorize the financing and provide the funds. So if you're wishing for a fast closing, you have to understand that this will set you back by a couple weeks, making you lose out on the opportunity.

With banks introducing more challenging loan requirements in the past several years, it has become harder for a self-employed person to obtain a mortgage loan, particularly if his credit situation is not optimal. So will inadequate funds stop you from following your dream? Never, on the grounds that you could always use the Thunderbolt hard money loan approach to fund your flipping project.

A hard money home loan in Thunderbolt offers you what's considered imperative to most real estate sales — a very fast closing of just a few weeks and at times even less. Furthermore, hard money lenders will often consent to funding up to 70% LTV of the property or home's valuation, as assessed by a credentialed third-party evaluation. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as higher priced than bank lending options. But usually, the rate of interest isn't as useful a measure for these loans, since they aren't long-term financing. Short-term loans of several months to a few years are best understood as cost of capital, much like any other expenditure in connection with a project. And once you have finally turned the property, recouping this expense is comparable to recouping the expense for all the bathroom updates you did.

Additionally, it is simple to be eligible for a a hard money mortgage, even if your credit situation is not that superb. Rather than focusing primarily on the person's credit score or wages, Thunderbolt hard money lenders, who may be a private company or an individual, approve a loan after analyzing the home value, how easy it will be to market, its location, and the odds of recovering their money if they have to foreclose the loan. Other variables that impact an individual's eligibility for a hard money real estate loan can include the amount he can put towards a down payment, his prior experience as a real estate investor, and selling price of comparable, recently sold residences in the vicinity.

So if you have stumbled on an excellent real estate opportunity with a significant chance of returns, you've also discovered a hard money lender in Thunderbolt who is willing to finance your rehab venture. Fill out the form on this page or call us to talk about the property or properties you have in mind.