Hard Money Loans in Bonita Springs
You discovered this outstanding possibility for fixing and flipping this wonderful old condo in a good area and it seems like the one you have been looking forward to for a long time. You've probably heard that competent home flippers, like the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit margin of around forty to fifty thousand dollars. And sure, they are aided in a big way via their professional knowledge, auction skills and understanding of hard money loans. With that being said, you have recently been brushing up your rehab and remodeling knowledge, have got a general contractor ready to go and are certain that you will be able to do a great job on this property.
But how can you obtain the needed financing for flipping? A conventional lender, for instance a bank, takes at the very least one to two months to approve the financing and deliver the money. So if you're hoping for a fast closing, you need to understand that this will set you back by a few weeks, causing you to lose out on the home.
As well as this, if you have a less-than-perfect credit rating or don't receive a conventional income source, it can be more difficult for you to obtain a bank loan, considering the more stringent loan criteria banks have introduced lately. So will inadequate funds keep you from following your aspirations? Absolutely not, because you always have the Bonita Springs, Florida hard money loan option.
A hard money home loan in Bonita Springs gives you what is probably most desired by real estate investors — a fast closing time period of as few as 2 weeks. Further, loans can be made up to 70% loan-to-value of the "as is" home's valuation, as determined by a licensed appraiser. Some individuals regard hard money real estate loans to be costlier than standard financing, because the lending rates for these loans ordinarily start at 10%. But in reality, the rate of interest is not as useful a measure for these loans, given that they aren't long-term loans. Short-term loans of a couple months to a few years are best thought of in terms of cost of capital, the same as any other financial outlay associated with a project. And once you have turned the property or home, recovering this expense is identical to recouping the expense for the bathroom improvements you did.
Also, it's easy to obtain a hard money mortgage, regardless if your credit rating is not that great. Bonita Springs hard money lenders don't authorize a loan strictly according to the applicant's credit score — rather they will analyze the property or home, its valuation and location, and the home's ability to pay back the financing by itself. On top of that, if the person can demonstrate prior experience in similar real estate ventures, can place down money towards a down payment, and the cost of equivalent properties in the vicinity works in his favor, he has a really good shot of qualifying for a hard money real estate loan.
So if you have stumbled on an excellent fixer-upper with a huge probability of returns, you have also stumbled upon a hard money lender in Bonita Springs who's prepared to provide financing for your flipping ventures. Submit the form or give us a call to talk about the property you have in mind.