Hard Money Loans in Inverness
There is this phenomenal opportunity to rehab and flip this nice outdated condo in a good area and it seems like the one you've been eagerly waiting on for quite some time. Everybody knows that capable professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can readily make an average profit of $40,000 to $50,000 when they flip properties. And yes, they are aided in a major way by their professional knowledge, auction skills and understanding of hard money loans. However, you are assured that your superb rehab and remodeling skills will assist you to do a great job on this property — what's more, you have already lined up one of the best contractors in the area to take care of this job.
But financing is often a different question entirely. If you meet with a common lending institution, such as a bank for a loan, it is more than likely going to take a minimum of four to eight weeks for your approval to come through and the money to be furnished. Since most sellers wish to have a fast closing, you may have to start looking for other financing options.
Moreover, for those who have an unfavorable credit situation or don't receive a routine source of income, it can be harder for you to be eligible for bank financing, considering the tougher loan requirements banks have introduced recently. So does this leave you with no option, but to abandon your dream of getting into rehabbing? Certainly not, due to the fact you could always go the Inverness, Florida hard money loan route to fund your home renovating project.
If you obtain a hard money home loan in Inverness, you'll get what is possibly most essential to real estate purchases throughout the country — a very fast closing of roughly a couple weeks. And additionally, loan amounts are made up to 70% loan-to-value of the as-is house's valuation, as determined by a professional appraiser. A number of people believe hard money real estate loans to be higher in price than standard financing, because the interest rates for such loans generally start off at 10%. But in reality, the interest rate is not as relevant for these loans, given that they aren't long-term financing. As it pertains to short-term loans of a handful of years or even less, you should look at them similar to every other expenditure for the project. Right after you remodel and unload the home, recouping this expense is the same as recuperating the money you spent for new kitchen appliances you placed into the place.
Moreover, even an individual with weak credit can easily qualify for a hard money mortgage. Instead of focusing only on the applicant's credit score or wages, Inverness hard money lenders, who may be a privately owned company or an individual, approve a loan after examining the property value, its marketability, where it is located, and the odds of recovering their money if they have to foreclose the loan. The total amount that a person can put down beforehand for the home, his past real estate experience, and selling price of comparative properties in the area are various other details that go into analyzing an applicant's eligibility for a hard money real estate loan.
Locating a hard money lender in Inverness to help with expenses for your flipping business is not hard, so long as the opportunity that lies ahead of you is promising and possesses a good potential for returns. Fill out the contact form or give us a call and let's talk about your property.