Hard Money Loans in Haines City
You discovered this amazing opportunity to fix and flip this nice outdated condo in a very good area and it seems like the one you've been anticipating for a long time. Expert residential home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a profit of forty to fifty grand on most projects. Naturally, you also recognize that their success are attributed to the fact that they're professionals, are proficient in hard money loans, they understand market trends really well and they also know how to work a public auction to buy their houses at a reasonable price. Still, your rehab and renovation knowledge isn't bad either — besides, you've already identified an ideal licensed contractor to take on the project.
But where can you get the needed capital for home flipping? If you go after a regular loan from the bank, you will need to wait roughly 4-8 weeks up until the mortgage loan is authorized and your funds are readily available. Given that home owners would rather have a fast closing, you might need to begin looking for other financing options.
With banks establishing tougher loan criteria in the past several years, it's become harder for a self-employed person to obtain a home loan, especially if his credit situation is not flawless. So does that mean you are without an option, but to abandon your dream of getting into flipping? Certainly not, because you could always use the Haines City, Florida hard money loan approach to pay for your home renovating project.
A hard money home loan in Haines City provides what's perhaps most sought after by real estate investors — a very fast closing time of as few as a few weeks. Also, hard money lenders are capable of doing lending up to 70% LTV of the property or home's valuation, as determined by a qualified third-party evaluator. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be higher priced than bank loans. But the term lengths for these loans are relatively short, making the rate much less important. Short-term loans of several months to a handful of years are best looked at in terms of cost of capital, very much like all other costs in connection with a project. Right after you renovate and resell the home, recuperating this expense is just like recuperating the expense for stainless steel appliances you put in the place.
Aside from that, hard money mortgages are not hard to qualify for, even in the event you have got a bad credit rating. Rather than focusing exclusively on the person's credit score or income, Haines City hard money lenders, who could be a privately owned company or an individual, approve a loan as a result of analyzing the property value, ease of marketability, where it is located, and the probability of recovering their money in the event of foreclosure. Several other criteria that influence a person's approval for a hard money real estate loan can include how much he is in a position to put into a down payment, his previous experience being a real estate investor, and price range of comparable, just recently sold residences nearby.
Finding a hard money lender in Haines City to fund your flipping business is not difficult, provided that the opportunity in front of you is promising and offers the right potential for returns. Fill out the contact form on this page or get in touch with us via phone to discuss your property.