Hard Money Loans in Key Biscayne
An outstanding deal on a fix and flip property in a very good area of the city suddenly turns up — sounds too good to be true. You may have heard that competent home flippers, similar to the couple on HGTV's Flip or Flop, enjoy an impressive average profit margin close to $40,000 - $50,000. Naturally, you also realize that their successes are attributed to the fact that they're industry experts, are knowledgeable in hard money loans, they know market trends quite well and furthermore, they are good at working an auction to purchase their houses at a reasonable deal. Nonetheless, your rehab and remodeling skills aren't that bad either — besides, you've already identified a good contractor to handle the project.
But how exactly do real estate investors find money? A standard lending institution, for instance a bank, takes at a minimum one to two months to approve the financing and release the capital. With the home owners wanting a fast closing, that does not appear to be a good option to you whatsoever.
To add to it, banks have been tightening up their lending standards in recent years, which makes it hard for people to get an ordinary loan if their credit situation is not flawless or he doesn't have a consistent salaried job. So will a lack of funds stop you from sticking with your ambitions? By no means, on the grounds that you can always go the Key Biscayne, Florida hard money loan route to fund your home flipping project.
When you put in an application for a hard money home loan in Key Biscayne, you'll get what is possibly most important to real estate purchases across the country — a quick closing of around a couple weeks. Additionally, loan amounts can be made up to 70% loan-to-value of the as-is value, as determined by a professional appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank loans. But in reality, the lending rate is not as useful a measure for these loans, since they are not long-term financing. As it pertains to short-term loans of several years or less, you should look at them the same as you would for every other expenditure for the project. And as soon as you've flipped the property or home, recovering this expense is comparable to recovering the expense for the bathroom upgrades you did.
In addition, even individuals with weak credit can still be eligible for a hard money mortgage. The person's credit score is not the lone determining factor for Key Biscayne hard money lenders — additionally, they analyze the property, its market valuation, its location, and its capability to bring back their financial commitment if things should not work out as intended. Additional factors that affect an applicant's acceptance for a hard money real estate loan can include the amount he can put into a down payment, his former experience as a real estate investor, and price range of comparable, fairly recently sold residences in the neighborhood.
Searching for a hard money lender in Key Biscayne to cover expenses for your fix and flip endeavor is not difficult, assuming that the opportunity that lies before you is promising and offers a good prospect for returns. Complete the form on this page or get in touch with us via phone to talk about your project.