Hard Money Loans in Ormond Beach
An outstanding buy on a fix and flip property located in a good area of the city shows up out of the blue — seems so good that it is hard to believe. You've heard that professional home flippers, much like the married couple on HGTV's Flip or Flop, have a remarkable average profit close to $40,000 - $50,000. Without question, their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction talents have played a big role in their results. However, you're convinced that your first class rehab and renovation talents will help you do a great job for this project — additionally, you already have lined up one of the best building contractors in town to work on the project.
But funding is often a separate question altogether. A conventional lender, like for example a bank, takes at a minimum one to two months to authorize the loan and release the funds. With all the home owners looking for a fast closing, that does not appear like a good idea to you at all.
To add to it, banks have been tightening their lending criteria in recent years, which makes it hard for someone to receive an ordinary home loan if their credit rating is not perfect or he is lacking a regular salaried profession. So does that leave you with no option, but to give up your dream of venturing into rehabbing? Never, considering that you could always use the Ormond Beach, Florida hard money loan approach to fund your home flipping project.
A hard money home loan in Ormond Beach can provide what's considered essential to many real estate deals — a very fast closing of just a few weeks and more often than not even less. What's more, the LTV value can reach up to 70% of the property's valuation, as estimated by a competent appraiser. A number of people regard hard money real estate loans to be more pricey than customary financing, considering interest rates for these loans generally start off at 10%. But usually, the lending rate is not as useful a measure for these loans, since they are not long-term financing. Short-term loans of a couple of months to a handful of years are best thought of in terms of cost of capital, similar to all other expenses associated with a project. And when you've finally flipped the property, recuperating this expense is identical to recuperating the expense for all the bathroom upgrades you performed.
In addition, even individuals with bad credit can easily be eligible for a hard money mortgage. The customer's credit score will not be the single determining factor for Ormond Beach hard money lenders — they also evaluate the house, how much it is worth, its location, and its capability to return their financial commitment if things do not work out as planned. How much money a borrower can put down beforehand towards the property or home, how much experience he has in real estate investments, and selling price of comparative homes in the same area are other details that go into analyzing a person's qualification for a hard money real estate loan.
So in the event you come across a good and worthwhile investment opportunity, rest assured you will have a hard money lender in Ormond Beach, prepared to loan you the funds you will need. Fill out the form or call us and let's talk about the property you have in mind.