Hard Money Loans in Cutler Bay
A remarkable bargain on a fix and flip property in a very good neighborhood suddenly shows up — seems too good to be true. Most folks know that capable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can readily earn a typical profit of forty to fifty thousand dollars on their home projects. And indeed, they are aided in a major way as a result of their professional knowledge, auction abilities and familiarity with hard money loans. With that being said, you've likewise been cultivating your rehab and renovation knowledge, have a building contractor lined up and are confident that you can do a bang up job for this property.
But where can real estate investors get financing? For those who get in touch with a standard lending institution, such as a bank for financing, it can take no less than thirty to sixty days for the approval to come through and your funds to be furnished. Since the majority of home owners would rather have a fast closing, you may have to begin seeking out additional financing options.
Moreover, should you have a less-than-perfect credit situation or do not have a consistent source of income, it is normally more difficult for you to be eligible for bank financing, seeing the more stringent loan criteria banks have issued recently. So will inadequate funds keep you from sticking with your aspirations? Certainly not, because you always have the Cutler Bay, Florida hard money loan alternative.
A hard money home loan in Cutler Bay gives you what's possibly most essential to real estate investors — a very fast closing time period of as few as fourteen days. What's more, the LTV value can go up to 70% of the property value, as estimated by a credentialed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more pricey than bank financing. But in reality, the interest rate isn't as relevant for these loans, because they will never be long-term financing. The price of such short-term loans should be viewed on par with every other financial outlay that you will have to meet for the project. Once you have turned the house and have made a successful return, you'll be able to recover this expense from the property — very much like recovering the money spent on the brand-new home appliances that you installed.
Furthermore, even someone with bad credit can still qualify for a hard money mortgage. Cutler Bay hard money lenders do not take on a loan solely on the basis of the person's credit score — rather they additionally examine the property, its valuation and location, and the home's capacity to pay back the loan on its own. Several other variables that influence an applicant's acceptance for a hard money real estate loan include how much money he is able to put towards a down payment, his prior experience as a real estate investor, and selling price of similar, recently sold homes nearby.
If you happen to have stumbled upon a really great fixer-upper with a significant probability of returns, you've also found yourself a hard money lender in Cutler Bay who is happy to fund your flipping project. Submit the form or give us a call and let's discuss your property.