Hard Money Loans in Madeira Beach
You discovered this outstanding opportunity to renovate and flip this wonderful old home in a good part of town and it looks like the one you have been eagerly waiting on for quite a while. Professional house flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a profit of $40-$50k on average. And yes, they are aided in a big way as a result of their professional knowledge, auction abilities and knowledge of hard money loans. On the other hand, you're certain that your impressive rehab and renovation abilities can help you do a superb job on the house — furthermore, you already have arranged to have one of the premier building contractors in the area to work on this project.
But where can you find the necessary funding for home flipping? A typical lender, say for example a bank, takes no less than 1 to 2 months to authorize the mortgage and deliver the cash. Due to the fact the home owners are wanting to find a fast closing, that doesn't appear to be a great idea to you at all.
With banks bringing in tougher loan criteria in the last few years, it is now more challenging for a self-employed individual to get a home loan, especially if his credit score is not perfect. So does this mean you have no option, but to give up your aspiration of venturing into home renovating? Never, considering that you could always use the Madeira Beach, Florida hard money loan approach to fund your rehab project.
If you should opt for a hard money home loan in Madeira Beach, you'll get what's possibly most vital to real estate purchases throughout the country — a quick closing of roughly two weeks. In addition, the LTV value can reach up to 70% of the home value, as evaluated by a credentialed appraiser. At first, hard money real estate loans, with starting interest rates of 10%, seem to be higher priced than bank lending options. But usually, the rate of interest is not as useful a measure for these loans, because they aren't long-term financing. The cost of such short-term loans should be looked at on par with any other financial outlay that you would need to meet pertaining to the project. Once you have sold the property or home and have made a successful return, you're able to reclaim this expense from the house — the same as recouping the money spent on the brand-new appliances for the kitchen that you have installed.
Furthermore, even someone with bad credit will be able to qualify for a hard money mortgage. Instead of focusing solely on the borrower's credit score or net income, Madeira Beach hard money lenders, who could be a private company or an individual person, authorize a loan as a result of evaluating the property value, how easy it will be to market, its location, and the odds of recuperating their money in case they have to foreclose the loan. On top of that, if the applicant can demonstrate past experience in similar real estate endeavors, can place down cash for a down payment, and the price of similar houses in the vicinity works to his benefit, he stands an excellent chance of being eligible for a hard money real estate loan.
So any time you run into a very good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in Madeira Beach, able to lend you the cash you need. Submit the form on this page or call us to discuss the property or properties you have in mind.