Hard Money Loans in Arcadia
Suppose that you've stumbled upon this really great deal for a fix and flip property located in a great neighborhood, and you happen to be either an experienced real estate investor or a first-timer who really wants to try his hand at flipping. You've probably heard that veteran house flippers, like the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit margin close to $40,000 - $50,000. And indeed, they are aided in a big way by their professional know-how, auction expertise and understanding of hard money loans. Still, your rehab and renovation knowledge isn't bad either — aside from that, you have already identified a good building contractor to handle this project.
But how exactly can real estate investors get funds? Should you opt for a regular loan from the bank, you will wind up waiting around approximately one to two months until the financing is approved and the funding is accessible. Since most home owners prefer a fast closing, it may be advisable to start searching for other funding options.
On top of this, banks have already been tightening their lending requirements as of late, making it challenging for a person to obtain a traditional loan if their credit circumstances are not flawless or he does not possess a regular salaried profession. So does this mean you have no option, but to drop your aspiration of venturing into the fix and flip business? Not at all, particularly while Arcadia, Florida hard money loans will assist you to achieve great things in real estate.
When you get a hard money home loan in Arcadia, you will get what is possibly most important to real estate negotiations across the country — a fast closing of around a couple weeks. What's more, the LTV value can reach up to 70% of the place's valuation, as estimated by a credentialed appraiser. With lending rates starting off around 10%, hard money real estate loans may look, initially, to be more costly compared to traditional bank loans. But in reality, the rate of interest is not as relevant for these loans, simply because they will never be long-term loans. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, the same as every other financial outlay related to a project. And when you've finally sold the house, recovering this expense is identical to recuperating the expense for all the bathroom updates you did.
Besides, hard money mortgages are easy qualifying, even if you have below-average credit. Rather than focusing primarily on the applicant's credit score or wages, Arcadia hard money lenders, who could be a privately owned company or an individual person, authorize a loan after assessing the property value, how easy it will be to market, its location, and the odds of recouping their capital in case they have to foreclose the loan. How much a borrower can put upfront towards the home, how much practical experience he has in real estate investing, and price range of equivalent properties in the same vicinity are various other details that go into analyzing an individual's qualification for a hard money real estate loan.
So in case you have found a wonderful home to flip with a huge probability of returns, you have also discovered a hard money lender in Arcadia who's ready to fund your rehab venture. Submit the contact form or give us a call and let's discuss your property.