Hard Money Loans in Altamonte Springs
A remarkable bargain on a fix and flip property in a very good subdivision all of a sudden shows up — seems too good to be true. Expert house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a gain of forty to fifty grand for most homes. No need to explain that their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction skills have played a significant part in their successes. Nonetheless, your rehab and renovation knowledge isn't bad either — besides, you have already found a good general contractor to start the project.
But capital is often a different problem entirely. When you meet with a regular lender, such as a bank for a mortgage loan, it can take a minimum of 4-8 weeks for the approval to be completed and the funds to be given out. So if you're expecting a fast closing, you have to understand or know that this will set you back by weeks, making you lose out on the house.
What's more, if you have a less-than-perfect credit rating or do not have a routine income, it is normally more challenging to be eligible for a bank financing, seeing the tougher loan guidelines banks have put in place in recent times. So do you have to give up and abandon your aspiration to venture into fix and flips? Certainly not, given that you always have the Altamonte Springs, Florida hard money loan alternative.
A hard money home loan in Altamonte Springs can provide what is considered vital to most real estate transactions — a quick closing of only a 2-3 weeks and sometimes less. Additionally, loan amounts are made up to 70% loan-to-value of the "as is" value, as established by a licensed appraiser. Some people believe hard money real estate loans to be costlier than regular loans, considering interest rates for such loans usually start at 10%. But usually, the interest rate is not as pertinent for these loans, since they are not long-term loans. Short-term loans of a couple of months to a handful of years are best looked at in terms of cost of capital, similar to any other financial outlay associated with a project. Right after you fix up and resell the house, recouping this expense is just like recouping the expense for home appliances you put in the home.
What's more, it's easy to be eligible for a a hard money mortgage, even if your credit rating is not that superb. Altamonte Springs hard money lenders do not take on a loan exclusively on the basis of the applicant's credit score — rather they additionally look at the home, its location and value, and the home's ability to pay back the financing on its own. Adding to that, if the borrower can demonstrate prior experience in equivalent real estate endeavors, can place down money towards a down payment, and the cost of similar homes in the neighborhood works in his favor, he has an excellent chance of being eligible for a hard money real estate loan.
So in the event you run into a very good and worthwhile flipping opportunity, feel comfortable knowing you will have a hard money lender in Altamonte Springs, in a position to lend you the money you'll need. Submit the contact form or get in touch with us via phone to talk about your project.