Hard Money Loans in Mary Esther
Imagine you've come across this truly good deal on a fix and flip property located in a great neighborhood, and you're either an experienced real estate investor or a first-timer who hopes to try his hand at flipping. Many people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, are able to generate an average profit margin of $40,000 to $50,000 in their rehab business. Of course, you also realize that their success are credited to the simple fact that they're professionals, are well versed in hard money loans, they understand the marketplace quite well and furthermore, they know how to work an auction for getting a reasonable price. Still, your rehab and remodeling knowledge isn't that bad either — besides, you have already found an ideal contractor to handle this home.
But how exactly do real estate investors obtain financing? Should you go after a conventional loan via a bank, you will wind up waiting somewhere around one to two months before the financing is approved and the funds are available. So if you will be wishing for a fast closing, it's important to realize that this could cost you weeks, making you lose out on the house.
With banks adding more challenging loan criteria in the past several years, it's become more difficult for a self-employed individual to get a home loan, especially if his credit circumstances are not flawless. So does this leave you with no other option, but to abandon your dream of getting into home flipping? By no means, on the grounds that you could always go the Mary Esther, Florida hard money loan route to fund your home flipping project.
A hard money home loan in Mary Esther offers you what's deemed vital to most real estate transactions — a very fast closing of only a couple of weeks and at times less. Also, hard money lenders are capable of doing lending up to 70% LTV of the property's valuation, as calculated by a credentialed third-party evaluation. A number of people believe hard money real estate loans to be higher priced than regular loans, because the interest rates of such loans normally start out at 10%. But the lengths of these loans are fairly short, which means the interest rate is less significant. The price of such short-term loans should be considered much like every other expense that you will have to meet for the project. Right after you renovate and sell off the home, recouping this expense is the same as recuperating the cost of the home appliances you placed into the place.
In addition, even a person with poor credit can still qualify for a hard money mortgage. The borrower's credit score is not the primary deciding factor for Mary Esther hard money lenders — in addition, they evaluate the home, its market valuation, its location, and its ability to return their investment if everything does not go as planned. How much money a borrower can put down beforehand for the home, his real estate experience, and price range of equivalent homes in the neighborhood are various other details that go into ascertaining a person's qualification for a hard money real estate loan.
So any time you run into a really good and profitable investment opportunity, relax knowing you will have a hard money lender in Mary Esther, in a position to lend you the capital you need. Fill out the contact form on this page or call us and let's discuss your property or properties.