Hard Money Loans in Cape Coral
There is this phenomenal opportunity to renovate and flip this nice old house in a very good location and it seems like the one you've been looking forward to for a long time. You've heard that competent home flippers, like the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit margin close to $40,000 - $50,000. Of course, you also understand that their great results can be credited to the simple fact that they are industry experts, are well versed in hard money loans, they understand the market really well and furthermore, they know how to work a public auction to buy their houses at a reasonable price. That said, you have also been brushing up your rehab and remodeling knowledge, have a licensed contractor lined up and are certain that you will be able to do a stellar job on this property.
But where precisely do real estate investors get funding? In the event you meet with a regular lender, such as a bank for a loan, it's more than likely going to take, at the very least, 30-60 days for the acceptance to be completed and the funds to be sent out. Considering that all the sellers are looking for a fast closing, that does not appear like a good option to you in the slightest.
On top of this, banks have been tightening up their lending criteria as of late, which makes it tough for a person to receive a regular home loan if their credit circumstances are not perfect or he does not have a consistent salaried job. So will a shortage of financing prevent you from pursuing your dream? Certainly not, given that you also have the Cape Coral hard money loan option.
When you apply for a hard money home loan in Cape Coral, Florida, you're going to get what is probably most important to real estate purchases throughout the country — a fast closing of about 2 weeks. Furthermore, hard money lenders will often consent to loans up to 70% LTV of the property's valuation, as identified by a credentialed third-party evaluation. With rates starting off at about 10%, hard money real estate loans might seem, initially, to be more costly in comparison with conventional bank loans. But usually, the rate of interest is not as relevant for these loans, simply because they will never be long-term financing. Short-term loans of several months to a few years are best thought of as cost of capital, much like any other financial outlay involved with a project. Right after you fix up and resell the house, recovering this expense is no different than recouping the money you spent for home appliances you installed in the house.
In addition, even individuals with poor credit can easily qualify for a hard money mortgage. Instead of focusing solely on the borrower's credit score or net income, Cape Coral hard money lenders, who may be a privately owned company or an individual, approve a loan after examining the home value, its marketability, where it is located, and the probability of recuperating their capital should they have to foreclose the loan. Additional variables that impact a customer's approval for a hard money real estate loan include the amount he is able to put towards a down payment, his past experience being a real estate investor, and selling price of comparative, just recently sold properties in the area.
So should you run into an outstanding and worthwhile flipping opportunity, be assured you'll have a hard money lender in Cape Coral, Florida, able to lend you the cash that you need. Fill out the contact form or give us a call to discuss the property you have in mind.