Hard Money Loans in Live Oak
You discovered this phenomenal possibility for fixing and flipping this wonderful old property in a very good part of town and it looks a lot like the deal you have been looking forward to for a long time. You may have heard that professional house flippers, much like the husband and wife on HGTV's Flip or Flop, have a remarkable average profit of around forty to fifty thousand dollars. And without a doubt, they are helped in a major way due to their professional knowledge, auction skills and familiarity with hard money loans. Still, your rehab and renovation knowledge isn't that bad either — in any case, you've already found a suitable contractor to start this job.
But where can you obtain the needed funding for flipping? When you get in touch with a common lender, like a bank for a mortgage loan, it is very likely going to take at least four to eight weeks for your approval to come through and your funds to be dispersed. So if you are wishing for a fast closing, you need to understand or know that this will cost you a few weeks, causing you to lose out on the sale.
To add to it, banks have been tightening up their lending criteria in recent times, rendering it more tough for people to get a typical home loan if their credit situation is not flawless or he doesn't have a regular salaried occupation. So must you give up and forego your dream to venture into real estate? By no means, on the grounds that you could always go the Live Oak, Florida hard money loan route to pay for your flipping project.
A hard money home loan in Live Oak offers you what is considered essential to many real estate deals — a quick closing of just a 2-3 weeks and at times less. In addition, the LTV value can reach up to 70% of the property value, as estimated by a credentialed appraiser. With the lending rates starting off at about 10%, hard money real estate loans may seem, at first glance, to be more pricey as compared with conventional bank lending products. But in reality, the interest rate is not as relevant for these loans, since they aren't long-term financing. Short-term loans of a couple of months to a few years are best approached in terms of cost of capital, much like all other expenses in connection with a project. After you renovate and sell the house, recuperating this expense is just like recovering the cost of the new kitchen appliances you installed in the place.
Additionally, it isn't difficult to qualify for a hard money mortgage, even when your credit rating is not that impressive. Live Oak hard money lenders don't take on a loan exclusively on the basis of the person's credit score — instead they also analyze the home, its location and value, and the home's capacity to pay back the loan on its own. The amount that an applicant can put upfront towards the property, his real estate experience, and selling price of comparative homes in the neighborhood are additional factors that go into analyzing a borrower's eligibility for a hard money real estate loan.
So any time you run into a very good and worthwhile investment opportunity, rest assured you'll have a hard money lender in Live Oak, able to loan you the money you will need. Complete the contact form on this page or get in touch with us via phone and let's discuss your project.