An outstanding deal on a fix and flip property in a very good area of the city all of a sudden shows up — sounds so good that it is hard to believe. Everyone knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, are able to make a typical profit margin of forty to fifty thousand dollars when they rehab properties. Undoubtedly, you also know that their great results are credited to the simple fact that they're experts, are proficient in hard money loans, they know the marketplace really well and in addition, they are good at working an auction to purchase their houses at a reasonable price. Still, your rehab and remodeling knowledge isn't bad either — aside from that, you have already located the right contractor to start this job.

But funding is often a separate problem altogether. In the event you meet with a customary lending institution, like a bank for a mortgage loan, it is more than likely going to take, as a minimum, 4-8 weeks for your acceptance to come through and the money to be distributed. So if you will be looking for a fast closing, you have to be aware that this may set you back by a couple weeks, causing you to lose out on the opportunity.

With banks introducing harder loan standards in the last few years, it has become much harder for a self-employed individual to find a home loan, especially when his credit circumstances are not optimal. So should you admit defeat and forego your desire to venture off into fix and flips? Definitely not, because you also have the hard money loan option.

Should you opt for a hard money home loan in , you're going to get what is possibly most essential to real estate purchases throughout the country — a quick closing of roughly a couple weeks. Also, hard money lenders can approve lending up to 70% LTV of the property's valuation, as estimated by a certified third-party evaluator. At first, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank lending products. But usually, the interest rate isn't as relevant for these loans, since they will never be long-term loans. The price tag on such short-term loans should be looked at much like any other cost that you would need to meet for the project. When you have resold the property and have made a successful return, you can recoup this expense from the property — the same as recouping the money spent on the brand-new kitchen appliances that you installed.

In addition, even an individual with low credit can still qualify for a hard money mortgage. Instead of focusing strictly on the applicant's credit score or source of income, hard money lenders, who could be a private company or an individual, authorize a loan after analyzing the home value, its marketability, its location, and the odds of recovering their money in case of foreclosure. On top of this, if the applicant have proven experience in similar real estate ventures, can place down cash towards a down payment, and the price of comparable homes in the vicinity works in his favor, he has got an excellent likelihood of qualifying to get a hard money real estate loan.

So in the event you run into a good and profitable flipping opportunity, be assured you'll have a hard money lender in , in a position to lend you the funds you'll need. Complete the contact form on this page or get in touch with us via phone to talk about the property or properties you have in mind.