Imagine you've run across this really great deal on a fix and flip property located in an ideal neighborhood, and you're either a skilled real estate investor or a newbie who is looking to try out flipping houses. Professional house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to haul in a profit of $40-$50k on a regular basis. And sure, they are aided in a big way via their professional experience, auction expertise and familiarity with hard money loans. Nonetheless, your rehab and renovation knowledge isn't bad either — aside from that, you've already identified a suitable general contractor to tackle the job.

But funding is a separate issue altogether. For those who meet with a regular lender, like a bank for funding, it can take, at a minimum, four to eight weeks for your approval to come through and your funds to be given out. So if you will be expecting a fast closing, it's important to understand or know that this will set you back by a couple weeks, making you lose out on the home.

Moreover, if you have an unfavorable credit rating or do not receive a regular source of income, it may be more difficult for you to obtain bank financing, with the tougher loan criteria banks have put in place lately. So does that leave you with no other option, but to drop your aspiration of getting into the fix and flip business? Definitely not, because you always have the Wrens hard money loan alternative.

A hard money home loan in Wrens provides what's considered vital to many real estate deals — a fast closing of only a 2-3 weeks and at many times less. What's more, the LTV value can range up to 70% of the home value, as estimated by a competent appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank lending products. But if you understand these loans are not long-term loans, the interest rate can be misleading. The price tag on such short-term loans ought to be evaluated much like every other expense that you would encounter in the course of the project. And once you've flipped the house, recuperating this expense is identical to recovering the expense for the kitchen and bath updates you performed.

Aside from that, hard money mortgages are easy qualifying, even if you have below-average credit. Rather than focusing exclusively on the applicant's credit score or income, Wrens hard money lenders, who could be a privately owned company or an individual, approve a loan after evaluating the home value, how easy it will be to market, where it is located, and the likelihood of getting back their money in case of foreclosure. The total amount that a person can put down in advance for the home, how much experience he has in real estate investments, and price range of equivalent properties in the same neighborhood are various other factors that go into establishing an applicant's suitability for a hard money real estate loan.

If you happen to have found a really good fixer-upper with a high potential for returns, you've also found yourself a hard money lender in Wrens who's prepared to provide financing for your fix and flip projects. Fill out the form on this page or call us and let's talk about your property or properties.