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Is It Difficult To Get A Hard Money Rehab Real Estate Invesment Loan?

Is it Difficult to Get a Hard Money Rehab Loan?

Hard Money Loans for Fix and Flip Real Estate Investments

Short-term real estate investing may remain deadlocked by lack of fix and flap financing. As an investor, you’ll have to pump money to acquire and refurbish a house before you can flip it for a profit. Banks have a penchant for long-term loans but not short-term financing for flipping houses as they latter have low-interest earnings. Fortunately, a new breed of hard money loans lenders have emerged to feed into this niche in real estate investing for consumers with unique needs or poor credit score. Fix, and flap investors use these private money loans due to their expedited disbursement and minimal red tape.

Simplistic Process

Investors can now acquire distressed or foreclosed homes for flipping by relying on hard money loans financing. Unlike bank loans, you’ll handle less paperwork and follow a clear-cut process. Some lenders manage to scale down interest rates as the loan is secured by the flipped homes. Available financing for hard money loan can allow you to keep 80% or above of the aggregate value with a term of 1 to 3 years. Leading lenders can approve funding within 24 hours or after a few days followed by funding. Fix and flip hard money loans have minimum fees, less stringent qualification requirements, and low-interest rates in single digits.

Guaranteed Reliability for Fix and Flip

Due to their speedy accessibility, hard money loans for flipping houses allow you to exploit money-spinning real estate market rates. The deal enables fix and flip investors to capitalize on favorable market forces such as recessions and low rates. You can get real estate investing hard money loan packages based on the aggregate project costs. Most lenders will not throw good money after bad; they fund a fraction of the project and leave the rest to the investor. Investors will exercise more due diligence to when they ante up.

Nosedive in Down Payments

Hard money lending has attracted mass equity financers eager to tap the rising demand for rentals and a growing appetite for face-lifting deserted homes. Red in tooth and claw competition has forced lenders to peg their interest rates on what prevails on the local market. It has also improved the quality of services for faster and smooth approval of applications.

Money for Old Rope

You can fall back on your bottom dollar with hard money loans for real estate investing in flipping houses. Loans based on the value of the refurbished home after repairs and renovations. Hard money-lenders who predicate the interest on the repaired value and finance the entire project help you rake in bucks without disturbing your purse. Some lenders don’t charge interest rates or points until you sell the house but rather require the borrower to repay a one-off lump sum.


Undoubtedly, fix and flip real estate investing would lurch into a tailspin in the absence of hard money loans. Banks and other conventional lenders have stringent demands, tons of paperwork and protracted procedures making them unsuitable for short-term financing. Investors lean toward hard money loan programs with higher rates for speed and flexibility. They allow investors to beat the clock, open the door for those with recovering credit, seize lucrative opportunities and borrow more than what banks offer.

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