Hard Money Loans in Coconut Creek
A remarkable deal on a fix and flip opportunity in a good area of the city shows up out of the blue — seems too good to be true. Expert residential home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of earning a gain of forty to fifty grand for most homes. Naturally, you also know that their successes are due to the fact that they're industry experts, are proficient in hard money loans, they understand the marketplace really well and they also are good at working a public auction to purchase their homes at a reasonable deal. With that being said, you have likewise been brushing up your rehab and remodeling skills, have a very good licensed contractor arranged and are certain that you can do an impressive job on this house.
But where do you find the necessary financing for home flipping? Should you go after a traditional bank loan, you will have to wait around somewhere around one to two months before the mortgage loan is authorized and your funds are available. With the sellers seeking a fast closing, that doesn't seem like a good idea to you in the slightest.
On top of this, banks have been tightening up their lending criteria as of late, which makes it difficult for someone to obtain an ordinary home loan if their credit score is not flawless or he doesn't have a regular salaried occupation. So will a shortage of funding prevent you from sticking to your dream? Never, on the grounds that you could always use the Coconut Creek, Florida hard money loan approach to fund your home flipping project.
A hard money home loan in Coconut Creek gives you what is probably most desired by real estate investors — a very fast closing time period of as little as 2 weeks. Also, hard money lenders are capable of doing loans up to 70% LTV of the property value, as calculated by a licensed third-party evaluation. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more pricey than bank loans. But the term lengths for these loans are quite shorter, making the rate less significant. When it comes to short-term loans of several years or even less, you should look at them identical to any kind of other expense for the project. Right after you remodel and resell the home, recovering this expense is the same as recouping the cost of the stainless steel appliances you put in the house.
Apart from this, hard money mortgages are not difficult to qualify for, even if you have bad credit. Coconut Creek hard money lenders don't take on a loan solely judging by the person's credit score — rather they also evaluate the home, its value and location, and the home's capacity to pay back the loan independent of the borrower. On top of this, if the person have proven experience in comparable real estate endeavors, can place down money towards a down payment, and the cost of comparable houses in the vicinity works in his favor, he will have an excellent likelihood of qualifying to get a hard money real estate loan.
So if you have stumbled upon a wonderful home to flip with a huge potential for returns, you've also discovered a hard money lender in Coconut Creek who's willing to fund your rehab project. Submit the contact form or give us a call to talk about the project you have in mind.