Hard Money Loans in Margate
You discovered this phenomenal opportunity to rehab and flip this nice out of date property in a fantastic part of town and it looks like the deal you have been expecting for quite some time. You may have heard that competent home flippers, such as the couple on HGTV's Flip or Flop, have an impressive average profit margin close to $40,000 - $50,000. Without question, their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have been major factors to their success. With that being said, you've recently been developing your rehab and remodeling skills, have a building contractor lined up and are certain that you will be able to do a bang up job on this house.
But money is often a separate question altogether. A standard lending institution, say for example a bank, takes at least one to two months to consent to the financing and hand over the money. So if you're anticipating a fast closing, you have to understand that this may cost you a few weeks, causing you to miss out on the opportunity.
To add to it, banks have already been tightening up their lending standards as of late, which makes it hard for a person to receive a regular loan if their credit rating is not perfect or he does not have a consistent salaried job. So does that mean you have no option, but to drop your aspiration of getting into home flipping? Definitely not, because you also have the Margate, Florida hard money loan option.
A hard money home loan in Margate offers what is considered essential to most real estate sales — a fast closing of just a few weeks and at times less. Plus, the LTV value can reach up to 70% of the home value, as estimated by a competent appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more pricey than bank lending options. But if you understand these are not long-term home loans, the interest rate tends to be misleading. Short-term loans of several months to a handful of years are best understood in terms of cost of capital, the same as all other expenditures related to a project. After you rehab and sell off the house, recovering this expense is no different than recouping the cost of the new kitchen appliances you installed in the place.
Furthermore, even an individual with weak credit can easily qualify for a hard money mortgage. The applicant's credit score will not be the primary deciding factor for Margate hard money lenders — they also examine the property, what is it valued at, where it is located, and its potential to bring back their investment if things should not go as intended. On top of this, if the person have proven experience in comparable real estate endeavors, can place down cash for the down payment, and the cost of similar homes in the vicinity works in his favor, he stands a very good chance of being eligible to obtain a hard money real estate loan.
If you happen to have stumbled upon a wonderful fixer-upper with a huge chance of returns, you've also stumbled upon a hard money lender in Margate that is happy to finance your flipping ventures. Enter your info into the contact form on this page or get in touch with us via phone to discuss the project you have in mind.