Hard Money Loans in Lynn Haven
Suppose that you've stumbled upon this really great deal on a fix and flip property in an ideal neighborhood, and you're either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. Expert house flippers, much like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of generating a profit of $40-$50k for most homes. And yes, they are aided in a big way by their professional experience, auction abilities and familiarity with hard money loans. Nonetheless, your rehab and remodeling knowledge isn't bad either — aside from that, you have already identified a suitable contractor to tackle the job.
But funding can be a different problem altogether. For those who get in touch with a standard lender, much like a bank for funding, it's very likely going to take a minimum of 30-60 days for the approval to be completed and the money to be distributed. Given that home owners favor a fast closing, it may be best to start seeking out additional financing alternatives.
To add to it, banks have been tightening up their lending standards in recent times, making it tough for people to receive an ordinary loan if their credit situation is not flawless or he does not have a regular salaried occupation. So will inadequate funding stop you from following your ambitions? Never, considering that you can always go the Lynn Haven, Florida hard money loan route to pay for your flipping project.
A hard money home loan in Lynn Haven offers you what is deemed imperative to most real estate transactions — a fast closing of just a few weeks and oftentimes even less. Furthermore, hard money lenders are capable of doing lending up to 70% LTV of the property's valuation, as determined by a professional third-party evaluator. On the surface, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank lending options. But the term lengths for these loans are much shorter, making the rate much less important. The price of such short-term loans should be evaluated on par with any other expense that you would need to meet pertaining to the project. Once you've sold the house and have made a positive gain, you'll be able to recoup this expense from the home — the same as recovering the money spent on the brand-new appliances for the kitchen that you have installed.
In addition, even individuals with weak credit can still qualify for a hard money mortgage. The borrower's credit score is not the primary determining factor for Lynn Haven hard money lenders — in addition, they evaluate the house, what is it valued at, its location, and its capacity to bring back their investment if things do not work out as planned. On top of this, if the individual can demonstrate past experience in equivalent real estate endeavors, can place down money for a down payment, and the cost of comparable houses in the vicinity works in his favor, he will have an excellent chance of being eligible for a hard money real estate loan.
Finding a hard money lender in Lynn Haven to fund your fix and flip endeavor is not very challenging, so long as the opportunity that lies ahead of you is promising and boasts a good prospect for returns. Complete the form on this page or give us a call and let's discuss your property or properties.