Hard Money Loans in Atlantic Beach
There's this phenomenal opportunity to rehab and flip this nice out of date property in a good part of town and it seems like the deal you've been wanting for quite some time. Professional home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a profit of $40-$50k for most homes. No need to explain that their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction talents have been major factors to their results. Still, your rehab and renovation skills aren't that bad either — in any case, you've already found the right building contractor to take on this home.
But how can real estate investors obtain funding? Should you meet with a common lending institution, much like a bank for a loan, it can take, at a minimum, 30-60 days for the acceptance to be completed and the funds to be dispersed. Considering that the sellers are seeking a fast closing, that does not seem like a good option to you in the slightest.
On top of this, banks have already been tightening up their lending criteria in recent years, rendering it more hard for someone to get an ordinary loan if their credit circumstances are not flawless or he does not have a regular salaried profession. So must you admit defeat and forego your ambition to get into real estate? Under no circumstances, particularly while Atlantic Beach, Florida hard money loans will assist you to achieve great things in the real estate world.
A hard money home loan in Atlantic Beach provides you with what is perhaps most important to real estate investors — a fast closing time period of as little as 14 days. Further, financing can be done for up to 70% loan-to-value of the as-is home's valuation, as established by a professional appraiser. With the lending rates starting out near 10%, hard money real estate loans may seem, at first glance, to be more costly when compared with traditional bank financing. But once you appreciate that these loans are not long-term mortgage loans, the rate of interest can be misleading. The cost of such short-term loans ought to be viewed much like any other expenditure that you will have to meet for the project. Once you've sold the property and have made a positive profit, you can recover this expense from the property or home — just like recovering the money necessary for the brand-new appliances for the kitchen that you've put in.
Aside from that, hard money mortgages are easy qualifying, even if you have a low credit rating. Atlantic Beach hard money lenders don't authorize a loan exclusively judging by the customer's credit score — instead they also look at the property, where it is located and how much it is worth, and the home's ability to pay back the loan by itself. Several other criteria that impact an individual's approval for a hard money real estate loan include how much he is in a position to put into a down payment, his prior experience as a real estate investor, and price of comparative, fairly recently sold properties in the neighborhood.
Locating a hard money lender in Atlantic Beach to finance your fix and flip endeavor is not very hard, so long as the opportunity that lies ahead of you is promising and possesses a strong potential for returns. Submit the form or give us a call to talk about the project you have in mind.