Hard Money Loans in Marianna
There's this phenomenal opportunity to fix and flip this nice old house in a very good part of town and it looks like the deal you have been anticipating for a long time. Many people know that skilled professional flippers, like Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can readily generate an average profit of $40,000 to $50,000 on their flips. And without a doubt, they are aided in a big way as a result of their professional know-how, auction skills and understanding of hard money loans. Having said that, you've recently been brushing up your rehab and renovation skills, have got a contractor arranged and are confident that you will be able to do a bang up job on this property.
But capital is a different question entirely. Should you approach a standard lending institution, like a bank for a mortgage loan, it's in all likelihood going to take no less than four to eight weeks for the acceptance to come through and your funds to be furnished. So if you are expecting a fast closing, you have to realize that this will set you back by a few weeks, making you lose out on the house.
To add to it, banks have been tightening up their lending requirements in recent years, making it hard for people to get a typical home loan if their credit circumstances are not flawless or he does not possess a regular salaried job. So does that leave you with no other option, but to give up your ambition of getting into home flipping? Most certainly not, because you always have the Marianna, Florida hard money loan alternative.
A hard money home loan in Marianna offers what's viewed as vital to most real estate deals — a very fast closing of only a couple of weeks and oftentimes even less. Furthermore, hard money lenders can do lending up to 70% LTV of the property or home value, as calculated by a licensed third-party evaluator. With lending rates starting off near 10%, hard money real estate loans might seem, at first, to be more pricey in comparison with conventional bank financing. But if you consider these are not long-term mortgage loans, the interest rate can be misleading. Short-term loans of a couple months to a handful of years are best looked at in terms of cost of capital, very much like every other expenditure related to a project. And when you've finally turned the property or home, recovering this expense is comparable to recuperating the expense for the bathroom or other improvements you did.
What's more, it isn't difficult to qualify for a hard money mortgage, even if your credit rating is not that extraordinary. As an alternative for focusing only on the borrower's credit score or source of income, Marianna hard money lenders, who can be a privately owned company or an individual, say yes to a loan as a result of analyzing the property value, how easy it will be to market, its location, and the likelihood of recovering their money in the event of foreclosure. The amount that a person can put down in advance for the property or home, how much experience he has in real estate investing, and selling price of comparative homes in the area are various other factors that go into determining an individual's qualification for a hard money real estate loan.
Locating a hard money lender in Marianna to help with expenses for your renovation project is not very hard, provided that the opportunity before you is promising and boasts the right prospect for returns. Complete the contact form on this page or call us and let's discuss the property or properties you have in mind.