Hard Money Loans in Lake City
There is this phenomenal opportunity to fix and flip this wonderful outdated condo in a good part of town and it looks a lot like the one you've been wanting for a long time. Professional house flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are able to earn a profit of $40-$50k on a regular basis. Without question, their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction talents have had a significant role in their successes. However, you are convinced that your first class rehab and renovation skills will assist you to do a superb job for this house — in addition, you've already arranged to have one of the best general contractors in town to take care of the project.
But funding is often a different question altogether. A traditional lender, like for example a bank, takes at the very least 1 to 2 months to consent to the financing and release the monies. Given that home owners favor a fast closing, you may have to begin looking for other funding options.
To add to it, banks have already been tightening up their lending criteria in recent times, making it challenging for people to get a typical loan if their credit rating is not flawless or he does not possess a consistent salaried occupation. So does that mean you have no option, but to drop your aspiration of getting into rehabbing? Certainly not, because you also have the Lake City, Florida hard money loan option.
A hard money home loan in Lake City provides what's perhaps most desired by real estate investors — a quick closing time of as few as 2 weeks. Plus, the LTV value can go up to 70% of the property value, as evaluated by a competent appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as higher priced than bank loans. But once you consider these are not long-term loans, the interest rate can be misleading. Short-term loans of a couple of months to a few years are best understood in terms of cost of capital, similar to all other expenditures associated with a project. And when you've sold the property, recouping this expense is comparable to recuperating the expense for all the bathroom updates you performed.
Furthermore, even someone with low credit will be able to qualify for a hard money mortgage. Instead of focusing exclusively on the applicant's credit score or wages, Lake City hard money lenders, who may be a private company or an individual person, say yes to a loan as a result of evaluating the home value, its marketability, its location, and the possibility of recuperating their money in case of foreclosure. The total amount that a borrower can put down beforehand towards the property, his real estate experience, and selling price of comparable homes in the neighborhood are various other factors that go into determining a person's eligibility for a hard money real estate loan.
So if you have found a really good home to flip with a significant potential for returns, you have also stumbled upon a hard money lender in Lake City who's willing to finance your flipping ventures. Submit the form or get in touch with us via phone and let's discuss your property or properties.