Hard Money Loans in Islamorada
An outstanding deal on a fix and flip opportunity located in a nice neighborhood all of a sudden shows up — sounds so good that it's hard to believe. You may have heard that professional house flippers, such as the couple on HGTV's Flip or Flop, turn an impressive average return close to forty to fifty thousand dollars. And yes, they are aided in a big way as a result of their professional experience, auction skills and knowledge of hard money loans. That said, you have recently been developing your rehab and renovation skills, have a general contractor ready for the project and are certain that you will be able to do a great job for this home.
But how do you get the needed funding for home flipping? A conventional lender, for instance a bank, takes at a minimum one to two months to approve the mortgage and hand over the money. With the home owners wanting a fast closing, that does not appear to be a good idea to you at all.
To add to it, banks have already been tightening up their lending requirements in recent years, rendering it more hard for a person to receive a regular loan if their credit situation is not flawless or he does not have a regular salaried profession. So does that mean you are without an option, but to drop your ambition to venture into home flipping? Never, considering that you could always use the Islamorada, Florida hard money loan approach to fund your rehab project.
A hard money home loan in Islamorada provides what is perhaps most desired by real estate investors — a quick closing in as few as a few weeks. Besides that, hard money lenders can approve loans up to 70% LTV of the property value, as determined by a credentialed third-party evaluation. With lending rates starting out at about 10%, hard money real estate loans may appear, initially, to be higher priced compared to traditional bank lending products. But once you appreciate that these are not long-term loans, the rate may be misleading. The cost of such short-term loans ought to be considered on par with any other expenditure that you will have to meet for the project. When you have sold the house and have made a good gain, you can recover this expense from the house — the same as recovering the money spent on the brand-new appliances for the kitchen that you installed.
Moreover, even a person with poor credit can still be eligible for a hard money mortgage. Islamorada hard money lenders do not authorize a loan strictly according to the person's credit score — instead they also analyze the property, where it is located and how much it is worth, and the property's capability to pay back the loan without the help of the borrower. The total amount that a person can put down beforehand for the home, his real estate experience, and price range of equivalent homes in the same neighborhood are various other details that go into ascertaining an applicant's eligibility for a hard money real estate loan.
Locating a hard money lender in Islamorada to cover expenses for your flipping business is not very hard, as long as the opportunity before you is promising and has a good prospect for returns. Complete the form or give us a call and let's talk about your project.