Hard Money Loans in LaBelle
Suppose that you've encountered this really great bargain on a fix and flip property located in a terrific neighborhood, and you are either a skilled real estate investor or a first-timer who wants to try his hand at flipping. Many people know that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can turn an average profit of forty to fifty thousand dollars in their rehab business. And sure, they are aided in a big way via their professional knowledge, auction expertise and knowledge of hard money loans. With that being said, you have recently been brushing up your rehab and remodeling skills, have a very good general contractor lined up and are confident that you will be able to do an impressive job for this property.
But money is a separate question entirely. For those who get in touch with a common lender, such as a bank for a mortgage loan, it very likely will take, as a minimum, thirty to sixty days for your acceptance to come through and your funds to be given out. Since the majority of sellers would prefer a fast closing, you might have to begin searching for additional financing options.
What's more, for those who have an unfavorable credit rating or don't have a routine income, it may be tougher for you to be eligible for a a bank loan, considering the stricter loan guidelines banks have put in place recently. So does this mean you have no option, but to give up your aspiration of venturing into the fix and flip business? Definitely not, because you also have the LaBelle, Florida hard money loan alternative.
A hard money home loan in LaBelle offers you what's deemed crucial to most real estate sales — a fast closing of just a 2-3 weeks and at many times less. Aside from that, financing can be done for up to 70% loan-to-value of the "as is" home's valuation, as calculated by a qualified appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more costly than bank loans. But the time frames of these loans tend to be rather short, making the rate much less important. Short-term loans of several months to a handful of years are best approached in terms of cost of capital, very much like every other expenditure in connection with a project. And when you have flipped the house, recouping this expense is the exact same as recouping the expense for the bathroom updates you performed.
Moreover, even individuals with bad credit can still qualify for a hard money mortgage. LaBelle hard money lenders do not take on a loan strictly on the basis of the borrower's credit score — instead they also analyze the home, its location and value, and the property's capability to pay back the financing on its own. The amount that an individual can put upfront towards the property or home, how much practical experience he has in real estate investing, and selling price of comparable homes in the area are other details that go into ascertaining an applicant's suitability for a hard money real estate loan.
So if you have stumbled on an excellent real estate opportunity with a high potential for returns, you have also found yourself a hard money lender in LaBelle who is happy to fund your fix and flip ventures. Enter your info into the form or call us and let's discuss your property.