Hard Money Loans in Fort Walton Beach
You discovered this phenomenal possibility for renovating and flipping this nice out of date condo in a very good area and it seems a lot like the deal you've been eagerly waiting on for a long time. Expert house flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a gain of $40-$50k as an average on multiple occasions. Undoubtedly, you also understand that their great results can be attributed to the fact that they are industry experts, are well versed in hard money loans, they understand the marketplace quite well and furthermore, they know how to work a public auction for getting a reasonable price. On the other hand, you're convinced that your impressive rehab and remodeling talents will assist you to do a great job on the property — what's more, you've already arranged to have one of the most suggested general contractors in the area to work on this project.
But capital is often a separate issue altogether. For those who apply for a regular loan from the bank, you will end up waiting around somewhere around one to two months before the money is authorized and your funding is accessible. So if you're anticipating a fast closing, you must understand that this may set you back by a couple weeks, causing you to lose out on the opportunity.
On top of this, banks have been tightening their lending requirements in recent times, which makes it tough for a person to receive a conventional home loan if their credit situation is not perfect or he doesn't have a consistent salaried job. So does that leave you with no option, but to give up your dream of getting into the fix and flip business? Never, considering that you could always use the Fort Walton Beach, Florida hard money loan approach to finance your rehab project.
A hard money home loan in Fort Walton Beach boasts what is perhaps most desired by real estate investors — a fast closing time of as few as two weeks. Aside from that, loans can be made up to 70% loan-to-value of the "as is" home value, as determined by a professional appraiser. With the interest rates starting out at about 10%, hard money real estate loans may appear, initially, to be more pricey as compared with traditional bank financing. But the term lengths for these loans tend to be quite shorter, which means the interest rate is much less important. The price tag on such short-term loans ought to be viewed on par with every other cost that you will have to meet pertaining to the project. Once you've sold the property and have made a successful financial gain, you can get back this expense from the property or home — similar to recouping the money necessary for the brand-new appliances for the kitchen that you've installed.
What's more, it's simple to qualify for a hard money mortgage, regardless if your credit situation is not that extraordinary. Fort Walton Beach hard money lenders don't authorize a loan solely based on the customer's credit score — rather they additionally examine the property or home, its value and location, and the home's ability to pay back the loan by itself. Additional factors that affect a borrower's approval for a hard money real estate loan include what amount of money he can put into a down payment, his prior experience being a real estate investor, and price of similar, recently sold properties in the vicinity.
So if you have stumbled on a really good home to flip with a huge probability of returns, you've also found yourself a hard money lender in Fort Walton Beach that's happy to provide funding for your flipping project. Submit the form or call us and let's discuss your project.