An incredible bargain on a fix and flip property located in a very good subdivision suddenly shows up — sounds so good that it is difficult to believe. A majority of people know that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, can readily generate an average profit of forty to fifty thousand dollars when they flip properties. It's fair to say their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have had a significant part in their successes. However, you are certain that your first class rehab and renovation abilities can help you do a superb job on this property — furthermore, you have already arranged to have one of the premier contractors in town to work on this project.

But financing is a different problem altogether. In the event you approach a regular lending institution, such as a bank for a mortgage loan, it in all likelihood will take at least 4-8 weeks for your acceptance to come through and your money to be sent out. Given that sellers give preference to a fast closing, it may be advisable to start searching for some other funding alternatives.

With banks establishing harder loan standards in recent times, it's become more difficult for a self-employed individual to obtain a mortgage loan, especially if his credit circumstances are not optimal. So should you admit defeat and abandon your ambition to venture into real estate? Certainly not, seeing as you also have the hard money loan option.

A hard money home loan in gives you what's considered crucial to most real estate deals — a quick closing of just a few weeks and oftentimes less. Besides that, hard money lenders frequently agree to lending up to 70% LTV of the property or home value, as identified by a credentialed third-party evaluation. A number of people consider hard money real estate loans to be costlier than customary loans, since the lending rates for these loans normally start out at 10%. But usually, the interest rate isn't as useful a measure for these loans, simply because they are not long-term loans. As it pertains to short-term loans of 1 or 2 years or less, you should consider them identical to any other expense for your project. Once you have resold the property or home and have made a positive gain, you're able to get back this expense from the property — very much like recuperating the money spent on the brand-new appliances for the kitchen that you've installed.

In addition, even a person with poor credit can easily qualify for a hard money mortgage. Instead of focusing entirely on the applicant's credit score or source of income, hard money lenders, who can be a private company or an individual person, authorize a loan after analyzing the property value, its marketability, its location, and the probability of recouping their money if they have to foreclose the loan. How much an applicant can put down beforehand for the property or home, how much experience he has in real estate investments, and selling price of comparative properties in the neighborhood are additional details that go into establishing an applicant's suitability for a hard money real estate loan.

So any time you run into a good and lucrative investment opportunity, rest assured you'll have a hard money lender in , prepared to loan you the funds that you need. Fill out the contact form or give us a call to talk about your project.