A remarkable buy on a fix and flip opportunity in a nice neighborhood all of a sudden shows up — seems too good to be true. Many people know that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, can earn an average profit of forty to fifty thousand dollars on their home projects. No need to explain that their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction skills have played a significant part in their results. Nonetheless, your rehab and remodeling knowledge isn't that bad either — in any case, you've already identified a good contractor to take on this job.

But money is usually a separate question entirely. For those who get in touch with a common lending institution, such as a bank for funding, it is likely going to take, as a minimum, four to eight weeks for the acceptance to come through and your funds to be dispersed. Since the majority of home owners give preference to a fast closing, you may have to start seeking out additional financing alternatives.

With banks adding tougher loan guidelines in the recent past, it's become much harder for a self-employed individual to obtain a mortgage loan, particularly if his credit circumstances are not perfect. So will inadequate funding stop you from pursuing your dream? Certainly not, considering that you could always go the hard money loan route to finance your home renovating project.

A hard money home loan in gives you what is deemed crucial to most real estate transactions — a fast closing of just a 2-3 weeks and at times even less. Besides that, hard money lenders will often consent to funding up to 70% LTV of the property value, as estimated by a credentialed third-party evaluation. Some people consider hard money real estate loans to be costlier than ordinary financing, because the interest rates of such loans often start out at 10%. But in reality, the interest rate isn't as useful a measure for these loans, because they will never be long-term financing. The cost of such short-term loans should be looked at much like every other financial outlay that you would have to meet for the project. And as soon as you have finally flipped the home, recuperating this expense is identical to recovering the expense for the kitchen and bath improvements you did.

What's more, it's easy to obtain a hard money mortgage, even when your credit situation is not that extraordinary. Rather than focusing entirely on the borrower's credit score or income, hard money lenders, who could be a privately owned company or an individual person, authorize a loan after assessing the property value, how easy it will be to market, where it is located, and the likelihood of getting back their capital in case they have to foreclose the loan. The total amount that a person can put upfront towards the house, how much experience he has in real estate investing, and price range of comparative properties in the vicinity are additional details that go into ascertaining a borrower's qualification for a hard money real estate loan.

So should you come across a really good and worthwhile investment opportunity, relax knowing you'll have a hard money lender in , willing to loan you the money you'll need. Enter your info into the form on this page or give us a call to talk about the property or properties you have in mind.