Suppose you've run into this really great bargain for a fix and flip property you found in a great neighborhood, and you are either a skilled real estate investor or a first-timer who is looking to try out flipping homes. Everyone knows that knowledgeable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can make a typical profit of $40,000 to $50,000 on their home projects. And indeed, they are aided in a major way via their professional know-how, auction abilities and familiarity with hard money loans. Having said that, you've recently been cultivating your rehab and renovation skills, have a contractor arranged and are positive that you can do a stellar job on this home.

But money can be a different problem entirely. Should you get in touch with a standard lending institution, like a bank for funding, it is in all likelihood going to take a minimum of 30-60 days for the approval to come through and your money to be furnished. So if you are hoping for a fast closing, it's important to understand that this will set you back by a couple of weeks, making you lose out on the opportunity.

With banks establishing harder loan standards in the last few years, it has become more challenging for a self-employed individual to find a mortgage loan, particularly if his credit rating is not optimal. So does that mean you have no option, but to abandon your dream of getting into flipping? Certainly not, because you also have the Willow Park hard money loan option.

A hard money home loan in Willow Park boasts what is perhaps most essential to real estate investors — a fast closing time of as few as a few weeks. What's more, the LTV value can go up to 70% of the home's valuation, as determined by a competent appraiser. With the lending rates starting out around 10%, hard money real estate loans may look, initially, to be more pricey compared to conventional bank lending products. But in reality, the rate of interest isn't as pertinent for these loans, given that they will never be long-term loans. The price of such short-term loans should be viewed much like every other expense that you will encounter in the course of the project. After you rehab and sell the property, recouping this expense is just like recuperating the cost of the stainless steel appliances you placed into the house.

Furthermore, even a person with low credit can still be eligible for a hard money mortgage. The applicant's credit score will not be the primary deciding factor for Willow Park hard money lenders — they also look at the home, how much it is worth, its location, and its capability to bring back their financial commitment if things do not go as planned. On top of this, if the borrower can demonstrate past experience in equivalent real estate projects, can put down money for a down payment, and the price of comparable homes in the neighborhood works to his benefit, he has a good likelihood of being eligible to obtain a hard money real estate loan.

So in case you have stumbled on a wonderful real estate opportunity with a huge potential for returns, you've also discovered a hard money lender in Willow Park who is prepared to finance your rehab ventures. Submit the contact form on this page or call us to talk about your property.