Suppose that you've come across this truly good deal on a fix and flip property located in a great location, and you're either a skilled real estate investor or a newbie who is looking to try out flipping homes. Expert home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a profit of forty to fifty grand for the majority of homes. And yes, they are helped in a major way by their professional knowledge, auction abilities and understanding of hard money loans. However, you are assured that your first class rehab and remodeling abilities will help you do an outstanding job for this project — furthermore, you have already arranged to have one of the most sought after contractors in the area to work on this job.

But capital is usually a different problem altogether. A typical lending institution, say for example a bank, takes no less than one to two months to approve the mortgage and provide the capital. So if you are expecting a fast closing, it is important to understand that this will cost you a couple weeks, causing you to lose out on the opportunity.

Furthermore, in case you have a less-than-perfect credit situation or don't have a regular source of income, it usually is more challenging for you to qualify for bank financing, seeing the tighter loan guidelines banks have issued of late. So should you give up and abandon your aspiration to venture off into the real estate market? By no means, especially when hard money loans enable you to accomplish many amazing things in real estate.

A hard money home loan in provides you with what's probably most crucial to real estate investors — a very fast closing in as little as a few weeks. In addition, the LTV value can range up to 70% of the property's valuation, as evaluated by a competent appraiser. With the rates starting off at about 10%, hard money real estate loans may look, at first, to be higher in price in comparison with conventional bank loans. But in reality, the interest rate is not as relevant for these loans, because they aren't long-term financing. The price of such short-term loans ought to be evaluated on par with any other cost that you would encounter during the project. When you have sold the property and have made a good return, you'll be able to recoup this expense from the property — very much like recovering the cost of brand-new appliances for the kitchen that you put in.

Furthermore, even someone with bad credit can easily qualify for a hard money mortgage. The customer's credit score is not the sole determining factor for hard money lenders — they also look at the home, its market value, where it is located, and its capacity to bring back their investment if everything does not work out as planned. Adding to this, if the applicant have proven experience in comparable real estate projects, can put down money for the down payment, and the cost of comparative homes in the vicinity works in his favor, he has got a very good shot of being eligible to obtain a hard money real estate loan.

So if you have stumbled upon an excellent home to flip with a huge chance of returns, you have also discovered a hard money lender in who's prepared to fund your rehab project. Complete the form or give us a call and let's discuss your project.