Hard Money Loans in Miami Springs
Suppose that you've run into this truly good deal on a fix and flip property located in a terrific neighborhood, and you are either an experienced real estate investor or a first-timer who hopes to try out flipping houses. Expert home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a profit of $40-$50k on average. It's fair to say their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction skills have had a big part in their successes. However, you're certain that your first class rehab and remodeling abilities will help you do a quality job on this home — furthermore, you have already arranged to have one of the best general contractors in the area to handle the job.
But how exactly do real estate investors obtain money? A traditional lending institution, like for example a bank, takes a minimum of 1-2 months to consent to the financing and release the money. Considering that all the sellers are seeking a fast closing, that doesn't seem like a great idea to you in the slightest.
What's more, should you have an unfavorable credit score or do not receive a routine income source, it is normally tougher to be eligible for a bank financing, with the tougher loan requirements banks have introduced recently. So will inadequate funds keep you from following your dream? By no means, especially when Miami Springs, Florida hard money loans will assist you to achieve great things in real estate.
If you decide to get a hard money home loan in Miami Springs, you'll get what's possibly most important to real estate offers throughout the country — a very fast closing of about 14 days. What's more, the LTV value can reach up to 70% of the home value, as estimated by a competent appraiser. With the loan rates starting near 10%, hard money real estate loans might seem, at first, to be more expensive as compared with conventional bank lending products. But once you appreciate that these are not long-term mortgage loans, the rate can be misleading. Short-term loans of several months to a few years are best understood in terms of cost of capital, similar to all other expenses associated with a project. And when you have finally turned the property or home, recovering this expense is identical to recouping the expense for the bathroom or other upgrades you did.
What's more, it's easy to qualify for a hard money mortgage, even when your credit rating is not that great. Instead of focusing solely on the borrower's credit score or income, Miami Springs hard money lenders, who could be a private company or an individual, say yes to a loan as a result of analyzing the home value, its marketability, where it is located, and the possibility of recovering their money in case they have to foreclose the loan. The total amount that a person can put down beforehand towards the house, how much practical experience he has in real estate investing, and selling price of comparative properties in the neighborhood are various other factors that go into ascertaining a borrower's qualification for a hard money real estate loan.
So if you have stumbled on a really great fixer-upper with a high prospect of returns, you have also stumbled upon a hard money lender in Miami Springs who's willing to finance your flipping project. Fill out the contact form on this page or give us a call to talk about your project.