A fabulous bargain on a fix and flip opportunity in a nice neighborhood shows up out of the blue — seems so good that it is hard to believe. You may have heard that competent home flippers, such as the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit margin of around $40,000 – $50,000. Of course, you also are aware that their results are credited to the simple fact that they are professionals, are well versed in hard money loans, they know the marketplace quite well and furthermore, they know how to work a public auction for getting an appropriate deal. With that being said, you have also been developing your rehab and remodeling knowledge, have a building contractor ready to go and are positive that you can do a bang up job for this property.

But where can you find the necessary funding for home flipping? A standard lending institution, say for example a bank, takes at the very least one to two months to authorize the mortgage and release the money. Given that home owners prefer a fast closing, you may want to begin looking for additional financing options.

Moreover, should you have a sub-optimal credit situation or don't receive a routine source of income, it can be tougher to be eligible for a bank loan, considering the more stringent loan criteria banks have issued of late. So does this mean you are without an option, but to give up your ambition of getting into home flipping? Certainly not, because you can always use the hard money loan approach to fund your flipping project.

A hard money home loan in offers you what's considered crucial to most real estate transactions — a very fast closing of just a couple of weeks and at many times less. Additionally, financing can be made up to 70% loan-to-value of the "as is" property's valuation, as determined by a licensed appraiser. Some people believe hard money real estate loans to be costlier than customary loans, considering interest rates for these loans usually start at 10%. But the lengths of these loans are fairly short, making the rate less significant. The price of such short-term loans ought to be evaluated on par with any other expense that you would encounter in the course of the project. After you rehab and unload the house, recuperating this expense is just like recovering the money you spent for home appliances you installed in the home.

Moreover, even individuals with poor credit will be able to qualify for a hard money mortgage. The customer's credit score will not be the sole deciding factor for hard money lenders — in addition, they analyze the home, how much it is worth, where it is located, and its ability to bring back their investment if everything does not work out as intended. On top of this, if the person have proven experience in similar real estate projects, can put down cash for the down payment, and the cost of similar properties in the neighborhood works in his favor, he has a very good chance of being approved to obtain a hard money real estate loan.

So if you have found a really great real estate opportunity with a high probability of returns, you have also found yourself a hard money lender in that's prepared to finance your flipping projects. Submit the contact form on this page or give us a call to talk about the project you have in mind.