Hard Money Loans in Belle Isle
You discovered this amazing opportunity to fix and flip this nice old home in a fantastic part of town and it looks a lot like the deal you have been anticipating for quite some time. Professional home flippers, such as 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 on average. Of course, you also recognize that their great results are due to the fact that they are professionals, are well versed in hard money loans, they know the market really well and they also are good at working an auction to buy their homes at an appropriate price. Having said that, you've recently been brushing up your rehab and remodeling knowledge, have got a licensed contractor arranged and are certain that you're capable of doing a bang up job on this home.
But capital is often a different question altogether. For those who get in touch with a customary lender, like a bank for financing, it's in all likelihood going to take no less than 4-8 weeks for the approval to come through and the money to be distributed. So if you're looking for a fast closing, you have to understand that this will cost you weeks, making you miss out on the opportunity.
To add to it, banks have been tightening their lending requirements as of late, making it hard for someone to get an ordinary loan if their credit situation is not perfect or he doesn't have a consistent salaried occupation. So do you have to give up and abandon your ambition to venture off into the real estate market? By no means, considering that you could always go the Belle Isle, Florida hard money loan route to fund your flipping project.
A hard money home loan in Belle Isle offers you what is viewed as essential to most real estate sales — a fast closing of just a 2-3 weeks and sometimes even less. What's more, the LTV value can go up to 70% of the property's valuation, as determined by a certified appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank lending options. But usually, the rate of interest isn't as pertinent for these loans, because they aren't long-term loans. The cost of such short-term loans ought to be evaluated much like any other cost that you would have to meet for the project. After you fix up and resell the home, recouping this expense is just like recouping the cost of the stainless steel appliances you placed into the property.
Furthermore, even a person with poor credit can still qualify for a hard money mortgage. Belle Isle hard money lenders do not approve a loan strictly judging by the person's credit score — instead they will look at the property, where it is located and what it is worth, and the home's capacity to pay back the financing on its own. Additional variables that have an impact on a borrower's eligibility for a hard money real estate loan include what amount of money he can put towards a down payment, his prior experience being a real estate investor, and price of comparative, fairly recently sold homes in the neighborhood.
If you happen to have stumbled upon a really good fixer-upper with a high potential for returns, you have also discovered a hard money lender in Belle Isle who's happy to finance your rehab venture. Fill out the contact form or call us to talk about the property or properties you have in mind.