Hard Money Loans in Daytona Beach Shores
A fabulous buy on a fix and flip opportunity in a very good subdivision suddenly shows up — sounds too good to be true. A majority of people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, are able to earn an average profit margin of $40,000 to $50,000 in their rehab business. Of course, you also realize that their successes can be attributed to the fact that they are industry experts, are proficient in hard money loans, they understand the marketplace quite well and furthermore, they know how to work a public auction to purchase their properties at an appropriate price. Nevertheless, you are convinced that your first class rehab and renovation abilities will enable you to do a quality job on this home — what's more, you have already lined up one of the most recommended building contractors in the business to take on this job.
But how can real estate investors obtain money? Should you approach a customary lender, such as a bank for financing, it's very likely going to take, at the very least, 4-8 weeks for your acceptance to come through and your money to be dispersed. Due to the fact all the sellers are looking for a fast closing, that doesn't appear to be a wise idea to you in the slightest.
Moreover, for those who have a sub-optimal credit situation or do not receive a consistent source of income, it is normally tougher to be eligible for a bank loan, considering the tougher loan requirements banks have issued of late. So does this mean you are without an option, but to abandon your aspiration to venture into flipping? By no means, particularly when Daytona Beach Shores, Florida hard money loans can help you accomplish many amazing things in real estate.
A hard money home loan in Daytona Beach Shores provides you with what is possibly most sought after by real estate investors — a very fast closing time of as little as 14 days. In addition, the LTV value can go up to 70% of the home's valuation, as determined by a competent appraiser. Some people consider hard money real estate loans to be more costly than standard financing, considering interest rates for such loans usually start off at 10%. But if you appreciate that these loans are not long-term loans, the rate of interest can be misleading. As it pertains to short-term loans of 1 or 2 years or even less, you should think of them identical to any sort of other expense for your project. Once you have resold the house and have made a positive financial gain, you'll be able to recover this expense from the property or home — much like recovering the money spent on the brand-new kitchen appliances that you installed.
Furthermore, even individuals with poor credit will be able to qualify for a hard money mortgage. Daytona Beach Shores hard money lenders don't take on a loan exclusively on the basis of the customer's credit score — rather they additionally examine the home, its location and value, and the home's capability to pay back the loan by itself. The total amount that a person can put down in advance towards the property, how much experience he has in real estate investments, and price range of comparable properties in the neighborhood are additional factors that go into determining an applicant's suitability for a hard money real estate loan.
So any time you come across a really good and lucrative flipping opportunity, rest assured you'll have a hard money lender in Daytona Beach Shores, equipped to lend you the funds you may need. Enter your info into the form or give us a call to talk about your property or properties.