Hard Money Loans in Clewiston
There's this outstanding possibility for rehabbing and flipping this wonderful out of date property in a fantastic area and it looks a lot like the deal you've been anticipating for quite some time. You may have heard that veteran property flippers, such as the husband and wife on HGTV's Flip or Flop, have an impressive average profit margin of around $40,000 - $50,000. And yes, they are aided in a major way due to their professional knowledge, auction skills and understanding of hard money loans. However, you are certain that your impressive rehab and remodeling talents will help you do a great job on this property — what's more, you have already lined up one of the premier general contractors in the business to take on this project.
But how can real estate investors find money? If you apply for a traditional bank loan, you will end up waiting around approximately 1-2 months before the money is approved and the funds are ready to go. Thus if you happen to be anticipating a fast closing, it is important you recognize that this will cost you a couple of weeks, making you lose out on the sale.
On top of this, banks have already been tightening their lending requirements in recent times, making it difficult for people to obtain a conventional loan if their credit situation is not perfect or he doesn't have a regular salaried job. So will a lack of financing keep you from following your aspirations? Definitely not, seeing as you also have the Clewiston, Florida hard money loan alternative.
A hard money home loan in Clewiston gives you what's regarded as crucial to many real estate deals — a very fast closing of only a few weeks and at many times even less. Furthermore, hard money lenders can do funding up to 70% LTV of the property or home's valuation, as established by a credentialed third-party appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank lending options. But usually, the lending rate isn't as useful a measure for these loans, simply because they are not long-term financing. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, similar to all other expenditures associated with a project. And as soon as you've turned the property, recuperating this expense is the exact same as recouping the expense for the kitchen and bath upgrades you performed.
What's more, it isn't difficult to obtain a hard money mortgage, even if your credit situation is not that impressive. Clewiston hard money lenders don't take on a loan strictly according to the person's credit score — rather they additionally look at the property, its value and location, and the property's capability to pay back the loan independent of the applicant. Other criteria that impact a customer's acceptance for a hard money real estate loan can include what amount of money he can put towards a down payment, his prior experience as a real estate investor, and price range of comparable, fairly recently sold homes nearby.
So any time you come across a very good and lucrative flipping opportunity, feel comfortable knowing you'll have a hard money lender in Clewiston, equipped to loan you the cash you'll need. Enter your info into the form on this page or get in touch with us via phone to discuss your property.