Hard Money Loans in Alachua
A fabulous buy on a fix and flip property located in a good neighborhood suddenly turns up — sounds so good that it's difficult to believe. Expert residential home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a profit of $40-$50k on average. And yes, they are helped in a major way due to their professional knowledge, auction skills and familiarity with hard money loans. On the other hand, you are assured that your superb rehab and renovation abilities will assist you to do a quality job on the house — what's more, you have already lined up one of the best building contractors in town to handle this job.
But where do real estate investors obtain money? When you meet with a customary lender, such as a bank for a mortgage loan, it's very likely going to take at least 30-60 days for the acceptance to be completed and your funds to be given out. With the sellers looking for a fast closing, that does not appear to be a good idea to you in the slightest.
With banks adding tougher loan guidelines in the past few years, it is now much harder for a self-employed individual to get a home loan, especially when his credit circumstances are not perfect. So does this mean you are without an option, but to give up your dream of getting into the fix and flip business? Most certainly not, seeing as you also have the Alachua, Florida hard money loan alternative.
A hard money home loan in Alachua boasts what is probably most important to real estate investors — a fast closing time of as few as fourteen days. And additionally, loan amounts can be made up to 70% loan-to-value of the "as is" house's valuation, as calculated by a professional appraiser. With the interest rates starting out near 10%, hard money real estate loans may look, at first glance, to be more costly in comparison with traditional bank financing. But once you consider these loans are not long-term loans, the rate can be misleading. As it pertains to short-term loans of a handful of years or less, you should look at them the same as you would for every other expenditure for the project. Once you've turned the house and have made a successful return, you'll be able to recover this expense from the property — similar to recouping the money necessary for the brand-new appliances for the kitchen that you've put in.
What's more, it isn't difficult to obtain a hard money mortgage, even when your credit score is not that extraordinary. As an alternative for focusing only on the borrower's credit score or source of income, Alachua hard money lenders, who could be a private company or an individual, say yes to a loan as a result of analyzing the property value, how easy it will be to market, its location, and the possibility of recouping their money if they have to foreclose the loan. On top of that, if the individual have proven experience in equivalent real estate endeavors, can put down cash towards the down payment, and the cost of comparative houses in the vicinity works to his benefit, he has an excellent chance of being approved to obtain a hard money real estate loan.
Finding a hard money lender in Alachua to finance your real estate project is not difficult, assuming that the opportunity in front of you is promising and possesses the right potential for returns. Submit the contact form or get in touch with us via phone to talk about the property you have in mind.