Hard Money Loans in Kenneth City
A fabulous bargain on a fix and flip property located in an excellent neighborhood all of a sudden shows up — seems so good that it's difficult to believe. Everybody knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to generate an average profit of $40,000 to $50,000 when they rehab properties. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction skills have been major factors to their results. However, you're assured that your first class rehab and remodeling abilities can help you do a quality job on this property — additionally, you've already lined up one of the finest general contractors in town to take care of the job.
But financing is a separate issue altogether. A standard lending institution, say for example a bank, takes at least one to two months to consent to the loan and release the funds. So if you are anticipating a fast closing, you need to understand that this will cost you a couple of weeks, making you lose out on the house.
To add to it, banks have already been tightening up their lending standards in recent years, making it challenging for people to obtain an ordinary loan if their credit circumstances are not flawless or he is lacking a regular salaried profession. So should you stop trying and abandon your desire to embark into the real estate market? Absolutely not, because you always have the Kenneth City, Florida hard money loan alternative.
A hard money home loan in Kenneth City gives you what's probably most important to real estate investors — a very fast closing time period of as little as two weeks. Additionally, financing is made up to 70% loan-to-value of the as-is home's valuation, as established by a licensed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be higher in price than bank lending options. But in reality, the lending rate is not as useful a measure for these loans, since they aren't long-term loans. Short-term loans of several months to a few years are best understood in terms of cost of capital, the same as all other expenses involved with a project. And as soon as you've sold the property, recovering this expense is the exact same as recuperating the expense for the bathroom or other improvements you did.
Aside from that, hard money mortgages are not hard to qualify for, even when you posses a bad credit rating. Kenneth City hard money lenders don't take on a loan strictly on the basis of the customer's credit score — instead they additionally look at the property or home, its value and location, and the home's capability to pay back the loan on its own. On top of this, if the borrower have proven experience in similar real estate projects, can place down cash for a down payment, and the cost of equivalent properties in the neighborhood works to his benefit, he has a really good shot of qualifying for a hard money real estate loan.
Locating a hard money lender in Kenneth City to fund your fix and flip endeavor is not hard, so long as the opportunity before you is promising and possesses a good potential for returns. Complete the contact form on this page or give us a call and let's discuss your property or properties.