Hard Money Loans in Mascotte
Suppose you've encountered this truly good bargain on a fix and flip property you found in a great location, and you are either a seasoned real estate investor or a first-timer who wants to try his hand at flipping. Professional residential home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a gain of forty to fifty grand for most homes. And sure, they are helped in a big way as a result of their professional know-how, auction skills and knowledge of hard money loans. Still, your rehab and remodeling knowledge isn't that bad either — aside from that, you've already located a good contractor to take on the job.
But where can you find the necessary financing for flipping? If you approach a regular lending institution, such as a bank for funding, it's more than likely going to take no less than four to eight weeks for the acceptance to come through and the money to be distributed. With all the sellers seeking a fast closing, that does not seem like a good idea to you in the slightest.
What's more, if you have a less-than-perfect credit situation or don't have a consistent income source, it can be harder to be eligible for bank financing, considering the tougher loan criteria banks have issued lately. So does that mean you are without an option, but to drop your ambition of getting into home renovating? Absolutely not, seeing as you always have the Mascotte, Florida hard money loan option.
A hard money home loan in Mascotte offers what's considered essential to many real estate transactions — a very fast closing of just a 2-3 weeks and at times less. Plus, the LTV value can go up to 70% of the home's valuation, as determined by a credentialed appraiser. With the rates starting off around 10%, hard money real estate loans may look, at first glance, to be higher priced when compared with traditional bank loans. But the lengths of these loans are relatively short, which means the interest rate is less important. When it comes to short-term loans of one or two years or less, you should think of them just like you would other expenses for your project. Right after you renovate and resell the home, recouping this expense is no different than recuperating the cost of the stainless steel appliances you installed in the place.
Aside from that, hard money mortgages are easy qualifying, whether or not you have less-than-perfect credit. Rather than focusing only on the borrower's credit score or wages, Mascotte hard money lenders, who can be a privately owned company or an individual, say yes to a loan as a result of examining the home value, its salability, where it is located, and the probability of getting back their capital in the event of foreclosure. On top of that, if the individual have proven experience in comparable real estate ventures, can put down cash towards a down payment, and the value of equivalent properties in the vicinity works in his favor, he will have a good shot of qualifying to obtain a hard money real estate loan.
Finding a hard money lender in Mascotte to finance your renovation project is not very challenging, provided that the opportunity that lies ahead of you is promising and has a strong potential for returns. Fill out the form or get in touch with us via phone to talk about your property.