Hard Money Loans in Lake Mary
A remarkable deal on a fix and flip property in a nice neighborhood all of a sudden shows up — sounds too good to be true. Most folks know that capable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, can readily generate a typical profit of forty to fifty thousand dollars on their home projects. Of course, you also know that their results can be attributed to the simple fact that they're industry experts, are well versed in hard money loans, they understand the market quite well and in addition, they are good at working an auction to purchase their homes at an appropriate price. Still, your rehab and remodeling knowledge isn't that bad either — besides, you've already identified a good general contractor to tackle this job.
But where precisely can real estate investors obtain financing? For those who go after a conventional loan via a bank, you will wind up waiting around somewhere around one to two months up until the time the mortgage is authorized and the funding is accessible. Due to the fact all the sellers are seeking a fast closing, that does not appear to be a good idea to you at all.
Furthermore, should you have a less-than-perfect credit score or don't receive a routine income, it can be tougher to be eligible for a bank financing, considering the stricter loan requirements banks have introduced of late. So will a lack of funding keep you from pursuing your ambitions? By no means, particularly while Lake Mary, Florida hard money loans can help you realize great things in the real estate market.
A hard money home loan in Lake Mary offers what is considered vital to many real estate transactions — a quick closing of only a 2-3 weeks and at times even less. And additionally, financing can be made up to 70% loan-to-value of the "as is" house value, as determined by a licensed appraiser. With rates starting at about 10%, hard money real estate loans may seem, at first, to be higher priced when compared with traditional bank lending products. But if you understand these loans are not long-term home loans, the rate of interest tends to be misleading. Short-term loans of several months to a handful of years are best thought of as cost of capital, the same as all other expenditures associated with a project. And as soon as you've finally sold the property, recouping this expense is comparable to recovering the expense for the bathroom or other improvements you performed.
Furthermore, even someone with bad credit can still be eligible for a hard money mortgage. Instead of focusing primarily on the person's credit score or wages, Lake Mary hard money lenders, who could be a privately owned company or an individual, say yes to a loan as a result of evaluating the property value, its marketability, its location, and the odds of getting back their capital should they have to foreclose the loan. Several other factors that affect a customer's approval for a hard money real estate loan can include what amount of money he is able to put towards a down payment, his previous experience as a real estate investor, and selling price of similar, fairly recently sold residences in the area.
So if you have found a really great real estate opportunity with a significant probability of returns, you've also found yourself a hard money lender in Lake Mary who is willing to fund your flipping projects. Complete the form or give us a call and let's talk about the property you have in mind.