Hard Money Loans in Hollywood
Suppose you've run into this truly good deal for a fix and flip property located in a great location, and you are either a skilled real estate investor or a newbie who wants to try out flipping homes. Expert house flippers, like the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a profit of forty to fifty grand for the majority of homes. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have had a big part in their success. Having said that, you've recently been brushing up your rehab and remodeling knowledge, have a very good contractor ready for the project and are confident that you're capable of doing a bang up job on this home.
But capital is a different problem altogether. In the event you go after an ordinary bank loan, you will need to wait around roughly 4-8 weeks before the financing is authorized and your money is accessible. So if you're expecting a fast closing, you must recognize that this could cost you a couple weeks, making you miss out on the home.
Moreover, should you have a sub-optimal credit rating or do not receive a regular income source, it is usually more challenging for you to qualify for a bank loan, with the tougher loan criteria banks have put in place lately. So will a lack of funding keep you from pursuing your ambitions? Never, due to the fact you could always go the Hollywood hard money loan route to fund your rehab project.
A hard money home loan in Hollywood offers you what's regarded as imperative to many real estate deals — a quick closing of only a 2-3 weeks and oftentimes less. Furthermore, hard money lenders can approve lending up to 70% LTV of the property or home value, as established by a licensed third-party appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as higher in price than bank financing. But if you appreciate that these are not long-term mortgage loans, the rate of interest can be misleading. When it comes to short-term loans of one or two years or less, you should think of them much like you would other expenditures for the project. And once you have turned the property, recuperating this expense is comparable to recuperating the expense for the bathroom or other updates you did.
Apart from this, hard money mortgages are easy qualifying, even in the event you posses less-than-perfect credit. Hollywood, Florida hard money lenders do not take on a loan exclusively according to the customer's credit score — rather they additionally analyze the home, its value and location, and the property's ability to pay back the financing without the help of the applicant. Additional variables that affect an individual's approval for a hard money real estate loan include what amount of money he can put into a down payment, his past experience as a real estate investor, and price of similar, fairly recently sold residences nearby.
So any time you come across a very good and worthwhile flipping opportunity, be assured you'll have a hard money lender in Hollywood, Florida, in a position to lend you the cash you will need. Submit the contact form or get in touch with us via phone to talk about your project.