Hard Money Loans in Miami Shores
An incredible bargain on a fix and flip opportunity located in a nice area of the city all of a sudden shows up — sounds so good that it's hard to believe. Everybody knows that skilled professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can readily make an average profit margin of $40,000 to $50,000 when they rehab properties. Without question, their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction talents have played an important role in their successes. That said, you have likewise been cultivating your rehab and remodeling skills, have a general contractor ready for the project and are certain that you can do a bang up job on this home.
But funding is often a separate problem altogether. For those who meet with a regular lender, much like a bank for funding, it's likely going to take, at a minimum, 4-8 weeks for the approval to come through and your money to be sent out. So if you will be looking for a fast closing, you must realize that this will set you back by weeks, making you lose out on the opportunity.
With banks bringing in harder loan requirements in recent years, it has become tougher for a self-employed person to find a mortgage loan, particularly if his credit circumstances are not perfect. So will a lack of funding stop you from following your ambitions? Definitely not, seeing as you also have the Miami Shores, Florida hard money loan option.
A hard money home loan in Miami Shores can provide what is viewed as essential to many real estate sales — a very fast closing of just a couple of weeks and at many times even less. Besides that, hard money lenders can approve funding up to 70% LTV of the property value, as assessed by a credentialed third-party evaluation. With interest rates starting off around 10%, hard money real estate loans might seem, at first glance, to be higher in price in comparison with conventional bank financing. But the time frames of these loans are quite shorter, which means the interest rate is less important. The price of such short-term loans ought to be evaluated on par with any other cost that you will have to meet pertaining to the project. Right after you renovate and sell off the home, recouping this expense is just like recouping the expense for stainless steel appliances you put in the place.
What's more, it isn't difficult to be eligible for a hard money mortgage, regardless of whether your credit rating is not that impressive. Instead of focusing entirely on the applicant's credit score or wages, Miami Shores hard money lenders, who may be a privately owned company or an individual person, approve a loan after evaluating the property value, how easy it will be to market, its location, and the odds of recouping their capital in case of foreclosure. Additional factors that impact an individual's eligibility for a hard money real estate loan include the amount he is able to put into a down payment, his previous experience as a real estate investor, and price range of comparative, recently sold properties in the vicinity.
So should you come across a good and worthwhile investment opportunity, rest assured you'll have a hard money lender in Miami Shores, in a position to loan you the money you may need. Enter your info into the form or get in touch with us via phone and let's discuss the property or properties you have in mind.