Hard Money Loans in Deerfield Beach
A fantastic deal on a fix and flip opportunity located in a good area of the city shows up out of the blue — seems so good that it's hard to believe. You've probably heard that veteran property flippers, similar to the married couple on HGTV's Flip or Flop, turn a remarkable average profit of around $40,000 - $50,000. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have been large factors to their successes. Nonetheless, your rehab and remodeling skills aren't bad either — aside from that, you have already located the right general contractor to handle this project.
But financing is often a separate problem altogether. When you approach a customary lender, much like a bank for a mortgage loan, it more than likely will take a minimum of thirty to sixty days for the approval to be completed and your money to be sent out. Thus if you happen to be looking for a fast closing, you must realize that this may set you back by weeks, causing you to miss out on the home.
With banks adding more challenging loan standards in the last few years, it has become harder for a self-employed individual to obtain a mortgage loan, particularly if his credit situation is not perfect. So does that mean you are without an option, but to abandon your dream to venture into home renovating? Most certainly not, given that you always have the Deerfield Beach, Florida hard money loan alternative.
A hard money home loan in Deerfield Beach boasts what is perhaps most important to real estate investors — a fast closing in as little as 14 days. Plus, the LTV value can range up to 70% of the home's valuation, as determined by a credentialed appraiser. A number of people regard hard money real estate loans to be higher in price than regular loans, because the lending rates for these loans normally start out at 10%. But usually, the rate of interest isn't as relevant for these loans, given that they are not long-term loans. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, much like any other expense in connection with a project. And as soon as you've finally sold the house, recovering this expense is comparable to recuperating the expense for all the bathroom improvements you performed.
Also, it's easy to obtain a hard money mortgage, even if your credit rating is not that superb. Instead of focusing solely on the applicant's credit score or income, Deerfield Beach hard money lenders, who may be a private company or an individual person, say yes to a loan as a result of assessing the home value, ease of marketability, its location, and the likelihood of recuperating their capital should they have to foreclose the loan. Adding to that, if the applicant have proven experience in comparable real estate ventures, can place down cash for a down payment, and the price of comparative houses in the neighborhood works in his favor, he has got a really good chance of being approved to obtain a hard money real estate loan.
If you happen to have stumbled on a wonderful real estate opportunity with a huge prospect of returns, you've also stumbled upon a hard money lender in Deerfield Beach, Florida that is ready to fund your flipping ventures. Enter your info into the contact form on this page or get in touch with us via phone to talk about the project you have in mind.