Hard Money Loans in Bay Harbor Islands
A remarkable bargain on a fix and flip property in a nice subdivision suddenly turns up — sounds too good to be true. You may have heard that competent house flippers, like the couple on HGTV's Flip or Flop, turn a remarkable average return of around forty to fifty thousand dollars. And sure, they are aided in a major way as a result of their professional knowledge, auction skills and understanding of hard money loans. Having said that, you've also been cultivating your rehab and remodeling skills, have got a licensed contractor ready for the project and are certain that you can do a bang up job on this house.
But where precisely can real estate investors obtain capital? A conventional lending institution, say for example a bank, takes a minimum of 1 to 2 months to authorize the mortgage and release the funds. With the home owners looking for a fast closing, that does not seem like a good idea to you in the slightest.
Moreover, in case you have an unfavorable credit situation or do not have a routine income, it is usually more challenging for you to be eligible for a a bank loan, considering the tougher loan criteria banks have put in place as of late. So will a lack of funding stop you from sticking with your ambitions? By no means, particularly while Bay Harbor Islands, Florida hard money loans will assist you to accomplish many amazing things in the real estate market.
A hard money home loan in Bay Harbor Islands offers what is viewed as vital to many real estate deals — a quick closing of just a couple of weeks and sometimes even less. Aside from that, financing can be done for up to 70% loan-to-value of the as-is house's valuation, as calculated by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as higher in price than bank loans. But in reality, the interest rate isn't as useful a measure for these loans, because they will never be long-term loans. Short-term loans of a couple months to a handful of years are best looked at in terms of cost of capital, similar to all other costs involved with a project. After you remodel and unload the home, recouping this expense is the same as recovering the expense for new kitchen appliances you put in the property.
Additionally, it isn't difficult to be eligible for a hard money mortgage, even in the event your credit situation is not that superb. Bay Harbor Islands hard money lenders don't authorize a loan exclusively based on the borrower's credit score — instead they also assess the property or home, where it is located and what it is worth, and the property's capacity to pay back the loan independent of the applicant. Adding to that, if the borrower can demonstrate prior experience in similar real estate ventures, can place down cash for a down payment, and the price of equivalent homes in the area works to his benefit, he has a good shot of being approved to obtain a hard money real estate loan.
Locating a hard money lender in Bay Harbor Islands to help with expenses for your renovation project is not difficult, provided that the opportunity before you is promising and offers a strong potential for returns. Fill out the form or get in touch with us via phone and let's discuss the property or properties you have in mind.