Hard Money Loans in Homestead
A fantastic bargain on a fix and flip opportunity in a nice subdivision suddenly shows up — seems too good to be true. Most folks know that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, are able to make a typical profit margin of forty to fifty thousand dollars on their home projects. And sure, they are aided in a big way as a result of their professional knowledge, auction abilities and familiarity with hard money loans. On the other hand, you're assured that your superb rehab and renovation abilities will help you do a quality job on the project — what's more, you've already arranged to have one of the best general contractors in the area to handle this job.
But money is a different issue altogether. For those who approach a standard lending institution, such as a bank for a mortgage loan, it's very likely going to take, as a minimum, four to eight weeks for your approval to be completed and the money to be accessible. So if you're wishing for a fast closing, you need to recognize that this may cost you weeks, causing you to lose out on the sale.
What's more, if you have an unfavorable credit score or don't have a routine source of income, it usually is more challenging to be eligible for bank financing, with the more stringent loan requirements banks have put in place of late. So must you stop trying and forego your aspiration to embark into the real estate market? Never, on the grounds that you could always go the Homestead, Florida hard money loan route to fund your home flipping project.
A hard money home loan in Homestead gives you what's deemed essential to many real estate deals — a very fast closing of only a 2-3 weeks and oftentimes less. Aside from that, loan amounts can be made up to 70% loan-to-value of the as-is home's valuation, as deemed by a licensed appraiser. With loan rates starting out near 10%, hard money real estate loans may appear, at first glance, to be higher in price compared to conventional bank financing. But the term lengths for these loans are comparatively short, which means the rate is much less important. The price of such short-term loans ought to be viewed on par with every other financial outlay that you would need to meet pertaining to the project. And once you've finally turned the property, recovering this expense is identical to recouping the expense for the kitchen and bath upgrades you did.
Besides, hard money mortgages are not hard to qualify for, even in the event you posses a low credit score. Homestead hard money lenders do not take on a loan strictly based on the customer's credit score — rather they also analyze the home, its valuation and location, and the home's capability to pay back the financing without the help of the borrower. On top of that, if the borrower can demonstrate past experience in comparable real estate endeavors, can put down money towards the down payment, and the cost of comparative properties in the area works to his benefit, he has a good chance of qualifying to obtain a hard money real estate loan.
Finding a hard money lender in Homestead, Florida to cover expenses for your flipping business is not difficult, as long as the opportunity that lies ahead of you is promising and offers a strong prospect for returns. Submit the contact form or give us a call to talk about your property or properties.