Hard Money Loans in Gulf Breeze
Suppose that you've run into this really great deal for a fix and flip property located in an ideal location, and you are either a seasoned real estate investor or a first-timer who is looking to try out flipping homes. Many people know that skilled professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, can readily earn a typical profit margin of $40,000 to $50,000 when they flip properties. And without a doubt, they are helped in a big way as a result of their professional knowledge, auction expertise and understanding of hard money loans. However, you are convinced that your first class rehab and renovation abilities can help you do a great job for this property — in addition, you already have arranged to have one of the best contractors in the business to handle this job.
But where do real estate investors get financing? A conventional lender, like for example a bank, takes no less than 1 to 2 months to approve the loan and provide the money. Thus if you are looking for a fast closing, you must be aware that this could set you back by a couple of weeks, making you miss out on the opportunity.
Furthermore, should you have a less-than-perfect credit situation or do not have a routine income source, it is usually more difficult for you to qualify for a bank loan, seeing the tighter loan criteria banks have introduced lately. So will inadequate financing prevent you from sticking with your ambitions? Definitely not, given that you always have the Gulf Breeze, Florida hard money loan option.
A hard money home loan in Gulf Breeze boasts what's probably most desired by real estate investors — a fast closing in as little as two weeks. Plus, the LTV value can go up to 70% of the place's valuation, as determined by a certified appraiser. Some people believe hard money real estate loans to be higher priced than ordinary financing, since the lending rates of such loans usually start out at 10%. But usually, the rate of interest isn't as relevant for these loans, because they aren't long-term financing. When it comes to short-term loans of 1 or 2 years or less, you should think of them similar to any sort of other expenditure for the project. And once you have sold the home, recouping this expense is identical to recovering the expense for the kitchen and bath upgrades you did.
Furthermore, even a person with poor credit can easily be eligible for a hard money mortgage. Instead of focusing strictly on the applicant's credit score or income, Gulf Breeze hard money lenders, who can be a private company or an individual, authorize a loan after evaluating the home value, its salability, its location, and the probability of recuperating their capital in case of foreclosure. Additional variables that impact an applicant's eligibility for a hard money real estate loan include what amount of money he is in a position to put towards a down payment, his past experience as a real estate investor, and price of similar, fairly recently sold properties in the neighborhood.
Finding a hard money lender in Gulf Breeze to finance your fix and flip endeavor is not hard, provided that the opportunity before you is promising and boasts a good prospect for returns. Fill out the contact form on this page or call us to talk about the project you have in mind.