Hard Money Loans in High Springs
A fantastic bargain on a fix and flip opportunity in a very good area of the city all of a sudden shows up — seems so good that it's difficult to believe. A majority of people know that capable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, are able to earn an average profit margin of forty to fifty thousand dollars when they rehab properties. Of course, you also are aware that their great results can be credited to the simple fact that they're professionals, are proficient in hard money loans, they know the market quite well and furthermore, they know how to work an auction to purchase their properties at a reasonable price. On the other hand, you are certain that your first class rehab and remodeling knowledge can help you do a great job for this house — furthermore, you already have lined up one of the finest contractors in the area to take on this project.
But how can you find the needed funding for flipping? Should you opt for a conventional loan from the bank, you will wind up waiting somewhere around 30-60 days up until the time the money is approved and your funds are accessible. Due to the fact all the home owners are seeking a fast closing, that doesn't seem like a good idea to you at all.
As well as this, in case you have a less-than-perfect credit score or do not have a conventional source of income, it is usually tougher for you to be eligible for a a bank loan, with the stricter loan guidelines banks have put in place recently. So does this leave you with no option, but to give up your dream of venturing into the fix and flip business? Certainly not, seeing as you always have the High Springs hard money loan alternative.
When you opt for a hard money home loan in High Springs, you'll get what is possibly most essential to real estate offers across the country — a very fast closing of around 14 days. Besides that, hard money lenders can do funding up to 70% LTV of the property's valuation, as assessed by a qualified third-party appraiser. Some individuals consider hard money real estate loans to be more expensive than standard loans, since the interest rates for such loans ordinarily start at 10%. But usually, the interest rate is not as relevant for these loans, since they will never be long-term financing. The cost of such short-term loans should be looked at much like every other expense that you will encounter during the project. When you have sold the property or home and have made a successful return, you'll be able to recoup this expense from the property — just like recuperating the money spent on the brand-new home appliances that you've installed.
In addition, even someone with poor credit can easily qualify for a hard money mortgage. High Springs hard money lenders don't approve a loan solely judging by the person's credit score — instead they will evaluate the property or home, where it is located and what it is worth, and the property's capability to pay back the loan without the assistance of the applicant. How much of their own money an applicant can put down in advance for the property, how much practical experience he has in real estate investments, and price range of comparative properties in the vicinity are various other details that go into analyzing an applicant's suitability for a hard money real estate loan.
So in case you have stumbled on a wonderful fixer-upper with a high prospect of returns, you've also discovered a hard money lender in High Springs who's happy to provide funding for your flipping ventures. Fill out the contact form or get in touch with us via phone to discuss your property or properties.