Suppose that you've stumbled upon this really great deal for a fix and flip property you found in a terrific location, and you happen to be either a seasoned real estate investor or a newbie who hopes to try his hand at flipping. You've heard that competent property flippers, much like the couple on HGTV's Flip or Flop, enjoy an impressive average return of around $40,000 – $50,000. It's fair to say their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction talents have been large factors to their results. Having said that, you have recently been cultivating your rehab and remodeling skills, have a very good general contractor arranged and are positive that you can do a bang up job for this property.

But where do you obtain the necessary financing for flipping? A standard lending institution, say for example a bank, takes no less than 1 to 2 months to consent to the loan and release the monies. With the home owners wanting a fast closing, that doesn't appear like a great idea to you in the slightest.

On top of this, banks have been tightening their lending standards as of late, which makes it tough for someone to get a traditional loan if their credit rating is not perfect or he is lacking a regular salaried occupation. So does this mean you are without an option, but to drop your dream of getting into home flipping? By no means, considering that you could always go the Yoakum hard money loan route to finance your rehab project.

A hard money home loan in Yoakum gives you what is perhaps most desired by real estate investors — a fast closing time of as little as 2 weeks. Aside from that, loan amounts can be made up to 70% loan-to-value of the as-is house's valuation, as established by a licensed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, could be seen as higher in price than bank lending products. But in reality, the lending rate isn't as useful a measure for these loans, since they will never be long-term loans. Short-term loans of a couple of months to a few years are best looked at in terms of cost of capital, much like any other financial outlay involved with a project. After you remodel and sell off the house, recuperating this expense is no different than recovering the one for home appliances you placed into the home.

Furthermore, even a person with weak credit will be able to be eligible for a hard money mortgage. Yoakum hard money lenders don't take on a loan strictly judging by the customer's credit score — rather they will analyze the property or home, its valuation and location, and the property's capability to pay back the financing independent of the person. Additional criteria that have an impact on an applicant's acceptance for a hard money real estate loan can include how much money he is able to put into a down payment, his past experience being a real estate investor, and price range of similar, just recently sold properties nearby.

So should you come across a good and profitable investment opportunity, relax knowing you will have a hard money lender in Yoakum, in a position to lend you the funds that you need. Submit the form on this page or get in touch with us via phone to discuss your project.