Hard Money Loans in Oakland Park
There's this amazing possibility for fixing and flipping this nice outdated condo in a fantastic location and it looks like the deal you have been wanting for a long time. You've probably heard that professional property flippers, such as the couple on HGTV's Flip or Flop, turn an impressive average profit of around forty to fifty thousand dollars. It goes without saying their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction skills have played an important part in their successes. Nonetheless, your rehab and remodeling knowledge isn't bad either — besides, you've already found the right general contractor to take on this project.
But where precisely do real estate investors find capital? Should you meet with a regular lending institution, such as a bank for financing, it's in all likelihood going to take at least four to eight weeks for your acceptance to come through and your funds to be furnished. Because most sellers wish to have a fast closing, it may be best to start searching for additional funding options.
What's more, for those who have a sub-optimal credit score or don't have a routine income source, it usually is harder to be eligible for bank financing, with the tougher loan criteria banks have put in place of late. So must you give up and abandon your dream to venture into the real estate market? Certainly not, given that you also have the Oakland Park, Florida hard money loan alternative.
A hard money home loan in Oakland Park boasts what is perhaps most sought after by real estate investors — a quick closing time period of as little as 2 weeks. Also, hard money lenders can do lending up to 70% LTV of the home's valuation, as calculated by a professional third-party evaluation. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as higher priced than bank lending options. But in reality, the rate of interest is not as useful a measure for these loans, since they aren't long-term financing. The price of such short-term loans should be considered much like every other expense that you will encounter in the course of the project. Right after you remodel and unload the home, recouping this expense is the same as recouping the expense for stainless steel appliances you installed in the property.
Apart from this, hard money mortgages are easy qualifying, even when you posses a weak credit score. Rather than focusing primarily on the borrower's credit score or net income, Oakland Park hard money lenders, who may be a privately owned company or an individual, authorize a loan as a result of analyzing the property value, its marketability, its location, and the possibility of recovering their capital in the event of foreclosure. Adding to this, if the borrower can demonstrate past experience in equivalent real estate endeavors, can place down cash for a down payment, and the price of comparable properties in the vicinity works in his favor, he stands a really good chance of qualifying to obtain a hard money real estate loan.
Finding a hard money lender in Oakland Park to cover expenses for your fix and flip endeavor is not difficult, as long as the opportunity that lies before you is promising and possesses a good prospect for returns. Complete the contact form on this page or get in touch with us via phone to talk about the property you have in mind.