Hard Money Loans in Minneola
Suppose you've stumbled upon this truly good deal for a fix and flip property you found in a terrific neighborhood, and you are either a skilled real estate investor or a first-timer who hopes to try his hand at flipping. Professional home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are able to generate a profit of $40-$50k on a regular basis. And yes, they are helped in a big way as a result of their professional knowledge, auction expertise and knowledge of hard money loans. Still, your rehab and remodeling skills aren't bad either — in any case, you have already found a good licensed contractor to handle the home.
But how do real estate investors get money? Should you go after a conventional bank loan, you will end up waiting approximately 4-8 weeks before the mortgage loan is authorized and the funding is ready to go. Since most home owners give preference to a fast closing, you might have to begin seeking out additional financing options.
What's more, for those who have a sub-optimal credit situation or do not have a consistent income, it can be more difficult to be eligible for bank financing, considering the stricter loan requirements banks have issued of late. So does that leave you with no option, but to drop your ambition of venturing into rehabbing? Certainly not, because you also have the Minneola, Florida hard money loan option.
A hard money home loan in Minneola offers you what's deemed essential to many real estate sales — a fast closing of only a 2-3 weeks and more often than not less. Plus, the LTV value can range up to 70% of the home value, as evaluated by a competent appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as higher in price than bank lending products. But the time frames of these loans are quite shorter, making the interest rate much less significant. The price of such short-term loans ought to be considered on par with every other financial outlay that you might encounter during the project. After you rehab and resell the house, recovering this expense is just like recouping the cost of the new kitchen appliances you put in the place.
Moreover, even a person with low credit can still qualify for a hard money mortgage. As an alternative for focusing strictly on the borrower's credit score or wages, Minneola hard money lenders, who can be a private company or an individual, authorize a loan after evaluating the property value, its salability, where it is located, and the probability of getting back their capital should they have to foreclose the loan. Additional variables that impact a person's approval for a hard money real estate loan include how much money he can put into a down payment, his prior experience as a real estate investor, and price range of comparable, just recently sold homes in the vicinity.
So in case you have found a wonderful fixer-upper with a significant chance of returns, you have also found yourself a hard money lender in Minneola that's willing to provide financing for your flipping projects. Fill out the contact form or give us a call to discuss your property or properties.