Hard Money Loans in Okeechobee
Imagine you've stumbled upon this excellent bargain on a fix and flip property located in a great neighborhood, and you are either a skilled real estate investor or a newbie who is looking to try out flipping homes. You've heard that veteran house flippers, like the husband and wife on HGTV's Flip or Flop, have a remarkable average profit close to $40,000 - $50,000. Undoubtedly, you also understand that their great results are credited to the fact that they are industry experts, are well versed in hard money loans, they know market trends quite well and furthermore, they know how to work an auction for getting a reasonable price. On the other hand, you are certain that your superb rehab and remodeling talents will assist you to do an outstanding job for this property — in addition, you already have lined up one of the best general contractors in the area to handle the job.
But financing is a different problem entirely. A typical lender, for instance a bank, takes at the very least one to two months to consent to the mortgage and hand over the funds. So if you happen to be looking for a fast closing, you must understand or know that this could cost you weeks, making you miss out on the sale.
What's more, should you have a less-than-perfect credit score or do not have a consistent source of income, it is normally more difficult for you to obtain bank financing, considering the stricter loan criteria banks have introduced of late. So does that leave you with no other option, but to give up your ambition to venture into rehabbing? By no means, considering that you can always use the Okeechobee, Florida hard money loan approach to finance your flipping project.
A hard money home loan in Okeechobee boasts what is possibly most crucial to real estate investors — a quick closing in as few as 14 days. Besides that, hard money lenders are able to do loans up to 70% LTV of the home's valuation, as identified by a credentialed third-party evaluator. On the surface, hard money real estate loans, with starting interest rates of 10%, could be seen as higher in price than bank loans. But in reality, the interest rate isn't as pertinent for these loans, simply because they will never be long-term financing. The price tag on such short-term loans should be looked at much like any other cost that you would encounter in the course of the project. After you rehab and unload the house, recuperating this expense is no different than recouping the cost of the stainless steel appliances you placed into the place.
Apart from this, hard money mortgages are easy qualifying, whether or not you have a low credit score. As an alternative for focusing exclusively on the borrower's credit score or wages, Okeechobee hard money lenders, who may be a private company or an individual, authorize a loan as a result of analyzing the property value, its marketability, where it is located, and the possibility of recovering their money if they have to foreclose the loan. How much a borrower can put upfront for the property or home, how much experience he has in real estate investments, and selling price of comparative homes in the same neighborhood are additional factors that go into establishing an individual's suitability for a hard money real estate loan.
If you happen to have stumbled on an excellent real estate opportunity with a high probability of returns, you've also discovered a hard money lender in Okeechobee that is ready to provide financing for your fix and flip projects. Enter your info into the contact form on this page or give us a call to talk about your project.