Hard Money Loans in Ocala
Suppose you've encountered this excellent deal on a fix and flip property located in a great neighborhood, and you are either an experienced real estate investor or a newbie who really wants to try his hand at flipping. You may have heard that professional house flippers, similar to the married couple on HGTV's Flip or Flop, enjoy an impressive average profit margin of around $40,000 - $50,000. And sure, they are aided in a big way via their professional knowledge, auction skills and understanding of hard money loans. That said, you have recently been developing your rehab and remodeling knowledge, have a general contractor lined up and are certain that you will be able to do a great job on this house.
But financing is a separate question entirely. A typical lender, like for example a bank, takes at the very least 1-2 months to approve the loan and provide the money. Because most home owners give preference to a fast closing, you may want to start seeking out other financing alternatives.
Furthermore, for those who have a less-than-perfect credit situation or do not have a regular source of income, it may be more challenging for you to be eligible for a bank loan, considering the more stringent loan criteria banks have put in place lately. So must you stop trying and forego your ambition to embark into the real estate market? By no means, especially while Ocala, Florida hard money loans enable you to accomplish great things in the real estate world.
If you obtain a hard money home loan in Ocala, you're going to get what is probably most essential to real estate negotiations across the country — a fast closing of around a couple weeks. What's more, the LTV value can go up to 70% of the home value, as determined by a certified appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be costlier than bank lending options. But when you appreciate that these are not long-term mortgage loans, the rate of interest tends to be misleading. The price tag on such short-term loans should be viewed on par with any other cost that you will encounter during the project. After you fix up and sell off the property, recouping this expense is just like recouping the cost of the home appliances you installed in the property.
Furthermore, even an individual with low credit will be able to qualify for a hard money mortgage. The borrower's credit score is not the single determining factor for Ocala hard money lenders — in addition, they consider the home, its market value, where it is located, and its capability to earn back their financial commitment if everything does not work out as intended. How much money a person can put down beforehand for the property, his past real estate experience, and price range of equivalent homes in the vicinity are various other details that go into analyzing a person's suitability for a hard money real estate loan.
So should you run into a good and lucrative investment opportunity, rest assured you'll have a hard money lender in Ocala, prepared to loan you the capital you will need. Submit the contact form on this page or get in touch with us via phone to talk about the property you have in mind.