Hard Money Loans in Palatka
Suppose that you've stumbled upon this really great deal on a fix and flip property in a great neighborhood, and you're either a skilled real estate investor or a first-timer who is looking to try his hand at flipping. You've heard that competent home flippers, such as the couple on HGTV's Flip or Flop, have a remarkable average profit margin close to $40,000 - $50,000. And indeed, they are aided in a major way as a result of their professional know-how, auction abilities and familiarity with hard money loans. However, you are convinced that your impressive rehab and renovation talents can help you do a superb job on the property — in addition, you have already arranged to have one of the most recommended building contractors in town to handle the job.
But funding is often a different problem altogether. A standard lender, for instance a bank, takes at least 1 to 2 months to consent to the mortgage and provide the cash. Considering that the home owners are seeking a fast closing, that does not appear like a great idea to you at all.
To add to it, banks have already been tightening up their lending requirements as of late, rendering it more tough for someone to obtain a typical loan if their credit circumstances are not flawless or he is lacking a consistent salaried occupation. So do you have to give up and forego your desire to get into the real estate market? Absolutely not, because you also have the Palatka, Florida hard money loan alternative.
A hard money home loan in Palatka provides what is perhaps most desired by real estate investors — a quick closing in as little as a few weeks. Aside from that, loans are made up to 70% loan-to-value of the "as is" valuation, as determined by a qualified appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank lending options. But the time frames of these loans tend to be relatively shorter, which makes the interest rate much less important. When it comes to short-term loans of a handful of years or even less, you should look at them similar to any sort of other expenditure for your project. Once you have resold the home and have made a positive financial gain, you're able to recover this expense from the property or home — just like recuperating the money spent on the brand-new home appliances that you put in.
Apart from this, hard money mortgages are easy qualifying, even when you posses a low credit score. Instead of focusing entirely on the borrower's credit score or wages, Palatka hard money lenders, who could be a private company or an individual, say yes to a loan after evaluating the property value, ease of marketability, where it is located, and the likelihood of recuperating their money in the event of foreclosure. On top of this, if the person can demonstrate prior experience in similar real estate endeavors, can put down cash towards the down payment, and the cost of comparable houses in the neighborhood works in his favor, he stands a good likelihood of being approved to get a hard money real estate loan.
Searching for a hard money lender in Palatka to finance your flipping business is not very hard, provided that the opportunity that lies before you is promising and offers a good prospect for returns. Enter your info into the contact form on this page or call us and let's talk about the project you have in mind.