Hard Money Loans in Lantana
Imagine you've come across this truly good deal for a fix and flip property you found in a terrific location, and you're either a seasoned real estate investor or a newbie who really wants to try his hand at flipping. You've heard that competent property flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy a remarkable average return near $40,000 - $50,000. It goes without saying their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction skills have been large factors to their successes. Having said that, you have also been developing your rehab and remodeling knowledge, have a very good licensed contractor arranged and are positive that you're capable of doing a stellar job on this property.
But financing can be a different problem altogether. If you approach a common lending institution, much like a bank for a loan, it can take, at the very least, 4-8 weeks for your acceptance to be completed and your funds to be dispersed. Due to the fact all the home owners are wanting to find a fast closing, that doesn't appear to be a great idea to you whatsoever.
To add to it, banks have been tightening up their lending requirements as of late, which makes it hard for a person to obtain an ordinary loan if their credit score is not perfect or he doesn't have a regular salaried profession. So must you give up and abandon your desire to get into the real estate market? Most certainly not, seeing as you always have the Lantana, Florida hard money loan alternative.
A hard money home loan in Lantana provides you with what's probably most essential to real estate investors — a very fast closing time of as few as 2 weeks. 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. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more costly than bank lending products. But when you understand these are not long-term mortgage loans, the rate of interest can be misleading. Short-term loans of several months to a few years are best understood as cost of capital, very much like all other expenses in connection with a project. Right after you fix up and sell the property, recouping this expense is no different than recovering the money you spent for home appliances you put in the place.
What's more, it is easy to be eligible for a a hard money mortgage, even if your credit rating is not that impressive. The applicant's credit score isn't the exclusive deciding factor for Lantana hard money lenders — additionally, they analyze the piece of real estate, what is it valued at, where it is located, and its capability to bring back their financial commitment if everything does not work out as planned. The total amount that an applicant can put down in advance for the home, how much experience he has in real estate investing, and price range of comparable properties in the vicinity are other details that go into establishing an individual's eligibility for a hard money real estate loan.
So in case you have stumbled on a wonderful fixer-upper with a high chance of returns, you've also stumbled upon a hard money lender in Lantana that is prepared to finance your flipping ventures. Complete the contact form or call us and let's talk about the property you have in mind.