Hard Money Loans in Palm Beach
Imagine you've run into this excellent deal on a fix and flip property in a great neighborhood, and you are either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. Professional home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of generating a profit of forty to fifty grand on a regular basis. Of course, you also realize that their great results are attributed to the simple fact that they are industry experts, are well versed in hard money loans, they understand the marketplace quite well and additionally, they are good at working an auction for getting an appropriate price. Having said that, you've recently been developing your rehab and renovation knowledge, have a very good general contractor lined up and are positive that you will be able to do a great job on this house.
But how do you get the needed funding for home flipping? Should you approach a common lending institution, like a bank for a loan, it is in all likelihood going to take, at a minimum, 30-60 days for the approval to be completed and your funds to be furnished. With the sellers looking for a fast closing, that does not seem like a good option to you in the slightest.
To add to it, banks have been tightening their lending standards as of late, which makes it challenging for someone to obtain a regular home loan if their credit situation is not perfect or he doesn't have a regular salaried job. So does that leave you with no option, but to give up your ambition to venture into home flipping? Under no circumstances, particularly when Palm Beach, Florida hard money loans enable you to realize great things in the real estate world.
If you decide to obtain a hard money home loan in Palm Beach, you will get what is perhaps most essential to real estate offers throughout the country — a very fast closing of approximately two weeks. Aside from that, loan amounts are made up to 70% loan-to-value of the as-is house's valuation, as determined by a professional appraiser. Some people regard hard money real estate loans to be costlier than ordinary loans, since the lending rates for these loans ordinarily start out at 10%. But when you appreciate that these are not long-term home loans, the rate of interest tends to be misleading. As it pertains to short-term loans of a handful of years or even less, you should think of them the same as you would for any other expenditure for your project. Once you have resold the house and have made a good profit, you'll be able to recover this expense from the house — similar to recouping the cost of brand-new kitchen appliances that you have put in.
Besides, hard money mortgages are not difficult to qualify for, even if you have very bad credit. Instead of focusing only on the person's credit score or income, Palm Beach hard money lenders, who could be a privately owned company or an individual, approve a loan after evaluating the home value, how easy it will be to market, its location, and the likelihood of recouping their capital if they have to foreclose the loan. How much of their own money an applicant can put down beforehand towards the property or home, his real estate experience, and selling price of comparative homes in the same area are various other details that go into analyzing an individual's eligibility for a hard money real estate loan.
If you happen to have stumbled upon an excellent home to flip with a significant prospect of returns, you have also discovered a hard money lender in Palm Beach that's willing to finance your rehab ventures. Submit the form or call us and let's talk about the project you have in mind.