Hard Money Loans in Maitland
There's this phenomenal opportunity to rehab and flip this wonderful old condo in a very good area and it looks like the deal you have been eagerly waiting on for quite some time. Many people know that capable professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, are able to make a typical profit of $40,000 to $50,000 when they flip properties. And sure, they are helped in a major way by their professional know-how, auction expertise and understanding of hard money loans. That said, you have recently been cultivating your rehab and renovation knowledge, have got a contractor arranged and are certain that you will be able to do a bang up job on this property.
But how can you find the needed funding for flipping? A standard lender, for instance a bank, takes no less than 1 to 2 months to authorize the financing and provide the cash. With all the sellers seeking a fast closing, that does not appear like a good option to you in the slightest.
With banks bringing in more challenging loan standards in the recent past, it has become more difficult for a self-employed individual to obtain a home loan, especially if his credit score is not optimal. So must you give up and abandon your dream to venture into the real estate market? Most certainly not, given that you also have the Maitland, Florida hard money loan option.
A hard money home loan in Maitland provides what's considered essential to many real estate transactions — a quick closing of only a few weeks and sometimes less. And additionally, loan amounts can be made up to 70% loan-to-value of the as-is valuation, as determined by a professional appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more expensive than bank loans. But once you appreciate that these loans are not long-term mortgage loans, the rate tends to be misleading. The price tag on such short-term loans ought to be evaluated much like any other expense that you would have to meet for the project. When you have sold the property or home and have made a positive profit, you can recover this expense from the property or home — the same as recuperating the cost of brand-new home appliances that you put in.
Aside from that, hard money mortgages are not difficult to qualify for, whether or not you posses a bad credit rating. Rather than focusing strictly on the borrower's credit score or net income, Maitland hard money lenders, who could be a private company or an individual, approve a loan as a result of analyzing the home value, its salability, its location, and the possibility of recovering their money in case they have to foreclose the loan. On top of that, if the individual have proven experience in equivalent real estate endeavors, can put down cash towards the down payment, and the value of equivalent properties in the neighborhood works in his favor, he stands an excellent likelihood of qualifying for a hard money real estate loan.
So any time you come across a very good and profitable flipping opportunity, relax knowing you'll have a hard money lender in Maitland, in a position to lend you the money you'll need. Fill out the form or give us a call to discuss your project.