Hard Money Loans in Clearwater
A remarkable deal on a fix and flip property located in an excellent subdivision all of a sudden shows up — sounds too good to be true. You've heard that veteran home flippers, similar to the married couple on HGTV's Flip or Flop, turn an impressive average return near forty to fifty thousand dollars. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have had a significant part in their success. With that being said, you have likewise been cultivating your rehab and remodeling skills, have got a contractor arranged and are certain that you're capable of doing a stellar job on this house.
But how do you find the needed financing for flipping? Should you go after a conventional loan from the bank, you will wind up waiting around roughly one to two months before the loan is approved and the funding is ready. With all the home owners looking for a fast closing, that does not appear like a good idea to you whatsoever.
With banks adding more challenging loan criteria in the past several years, it is tougher for a self-employed individual to find a mortgage loan, particularly if his credit rating is not optimal. So must you admit defeat and forego your desire to embark into the real estate market? Certainly not, because you also have the Clearwater, Florida hard money loan option.
A hard money home loan in Clearwater promises what's possibly most important to real estate investors — a quick closing in as little as fourteen days. Further, loans can be done for up to 70% loan-to-value of the as-is home's valuation, as calculated by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank loans. But in reality, the lending rate is not as useful a measure for these loans, since they are not long-term financing. As it pertains to short-term loans of one or two years or less, you should think of them similar to any other expenditure for the project. Once you have resold the home and have made a positive gain, you're able to recoup this expense from the property — similar to recovering the money spent on the brand-new home appliances that you installed.
In addition, even someone with weak credit can still qualify for a hard money mortgage. Instead of focusing strictly on the applicant's credit score or source of income, Clearwater hard money lenders, who may be a privately owned company or an individual, say yes to a loan as a result of assessing the home value, ease of marketability, where it is located, and the likelihood of recouping their money if they have to foreclose the loan. Adding to that, if the applicant can demonstrate prior experience in equivalent real estate endeavors, can place down cash towards the down payment, and the cost of comparable properties in the neighborhood works to his benefit, he stands a good likelihood of being eligible for a hard money real estate loan.
So should you come across a really good and profitable flipping opportunity, feel comfortable knowing you'll have a hard money lender in Clearwater, Florida, prepared to lend you the cash that you need. Enter your info into the form or call us and let's talk about your property.