An incredible buy on a fix and flip property in a good subdivision all of a sudden shows up — seems so good that it is hard to believe. Expert house flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are able to generate a gain of $40-$50k on most projects. Undoubtedly, you also are aware that their successes are attributed to the fact that they're professionals, are knowledgeable in hard money loans, they know the market really well and additionally, they are good at working a public auction to buy their homes at an appropriate price. Having said that, you have recently been cultivating your rehab and remodeling skills, have got a building contractor ready to go and are confident that you're capable of doing a bang up job for this home.

But where do you obtain the needed financing for home flipping? Should you meet with a common lender, much like a bank for a mortgage loan, it's in all likelihood going to take, at the very least, four to eight weeks for the approval to be completed and your funds to be distributed. Since most home owners favor a fast closing, you might need to start seeking out some other funding alternatives.

As well as this, should you have a less-than-perfect credit score or do not receive a regular income source, it usually is tougher to be eligible for bank financing, seeing the more stringent loan requirements banks have issued lately. So does this mean you are without an option, but to drop your dream of venturing into flipping? By no means, because you can always go the Watauga hard money loan route to pay for your home renovating project.

A hard money home loan in Watauga gives you what is perhaps most important to real estate investors — a fast closing time period of as little as two weeks. Also, hard money lenders can do funding up to 70% LTV of the home value, as established by a credentialed third-party appraiser. A number of people consider hard money real estate loans to be higher in price than customary loans, considering interest rates for these loans normally start out at 10%. But the time frames of these loans are rather short, which means the interest rate is far less important. As it pertains to short-term loans of 1 or 2 years or less, you should look at them the same as you would for any other expense for your project. When you have sold the home and have made a successful return, you're able to get back this expense from the house — the same as recuperating the money necessary for the brand-new home appliances that you've installed.

Also, it is simple to obtain a hard money mortgage, even if your credit score is not that extraordinary. Instead of focusing exclusively on the applicant's credit score or source of income, Watauga hard money lenders, who could be a private company or an individual, say yes to a loan as a result of evaluating the property value, how easy it will be to market, where it is located, and the likelihood of getting back their money if they have to foreclose the loan. How much a borrower can put down in advance towards the property, his real estate experience, and price range of equivalent homes in the same neighborhood are various other details that go into determining a person's suitability for a hard money real estate loan.

If you happen to have stumbled upon an excellent home to flip with a huge potential for returns, you've also discovered a hard money lender in Watauga that's ready to provide funding for your rehab projects. Enter your info into the form on this page or give us a call to talk about your property or properties.