Hard Money Loans in Indian Rocks Beach
A fabulous deal on a fix and flip opportunity located in a very good area of the city shows up out of the blue — seems too good to be true. Everybody knows that capable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, are able to turn a typical profit of $40,000 to $50,000 on their home projects. And without a doubt, they are aided in a major way due to their professional knowledge, auction abilities and familiarity with hard money loans. Still, your rehab and remodeling knowledge isn't bad either — besides, you've already located a suitable general contractor to handle the home.
But financing is often a different problem entirely. A standard lending institution, for instance a bank, takes at a minimum 1 to 2 months to authorize the financing and release the cash. Since most home owners would rather have a fast closing, you may want to begin seeking out additional funding alternatives.
With banks establishing tougher loan criteria in the last few years, it is now more difficult for a self-employed individual to find a mortgage loan, especially if his credit situation is not perfect. So will inadequate funding prevent you from sticking with your ambitions? Absolutely not, seeing as you always have the Indian Rocks Beach, Florida hard money loan option.
A hard money home loan in Indian Rocks Beach provides what is regarded as essential to most real estate sales — a fast closing of just a 2-3 weeks and at times even less. Also, hard money lenders are capable of doing lending up to 70% LTV of the property or home's valuation, as established by a licensed third-party appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank lending options. But in reality, the lending rate is not as pertinent for these loans, given that they aren't long-term financing. As it pertains to short-term loans of one or two years or less, you should think of them identical to any kind of other expense for the project. After you remodel and resell the property, recouping this expense is the same as recouping the cost of the stainless steel appliances you installed in the home.
Moreover, even an individual with low credit can easily qualify for a hard money mortgage. As an alternative for focusing exclusively on the person's credit score or income, Indian Rocks Beach hard money lenders, who can be a private company or an individual person, approve a loan after examining the home value, how easy it will be to market, where it is located, and the probability of recuperating their capital in the event of foreclosure. On top of this, if the borrower can demonstrate prior experience in equivalent real estate endeavors, can put down money for the down payment, and the price of comparable homes in the neighborhood works to his benefit, he will have a very good shot of qualifying to get a hard money real estate loan.
So any time you run into a good and profitable flipping opportunity, be assured you will have a hard money lender in Indian Rocks Beach, willing to loan you the capital you may need. Complete the form or get in touch with us via phone and let's talk about the property or properties you have in mind.