Hard Money Loans in Parkland
Imagine you've run into this excellent bargain on a fix and flip property located in a great neighborhood, and you happen to be either a skilled real estate investor or a first-timer who is looking to try his hand at flipping. Professional house flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a profit of forty to fifty grand on a regular basis. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have been major factors to their success. Nonetheless, your rehab and renovation skills aren't that bad either — besides, you've already located a good contractor to start the home.
But how exactly do real estate investors find money? If you get in touch with a customary lender, such as a bank for funding, it can take, as a minimum, 4-8 weeks for your acceptance to come through and your money to be sent out. Given that home owners would rather have a fast closing, you may want to start looking for additional funding alternatives.
With banks bringing in tougher loan guidelines in recent times, it is tougher for a self-employed person to get a mortgage loan, particularly if his credit situation is not optimal. So should you give up and abandon your aspiration to venture into fix and flips? Never, because you could always use the Parkland, Florida hard money loan approach to pay for your rehab project.
If you decide to opt for a hard money home loan in Parkland, you will get what's probably most important to real estate transactions across the country — a fast closing of about a couple weeks. Also, hard money lenders frequently agree to loans up to 70% LTV of the home value, as calculated by a licensed third-party appraiser. A number of people consider hard money real estate loans to be more pricey than regular financing, because the lending rates of such loans often start out at 10%. But in reality, the lending rate isn't as relevant for these loans, given that they are not long-term loans. As it pertains to short-term loans of a handful of years or less, you should think about them much like you would other expenditures for the project. And once you've flipped the house, recovering this expense is comparable to recuperating the expense for the bathroom updates you did.
Also, it is easy to be eligible for a hard money mortgage, regardless if your credit score is not that superb. Instead of focusing entirely on the person's credit score or source of income, Parkland hard money lenders, who could be a private company or an individual person, say yes to a loan after examining the home value, its marketability, its location, and the possibility of getting back their money in case of foreclosure. Several other factors that affect a customer's acceptance for a hard money real estate loan can include how much money he can put into a down payment, his previous experience as a real estate investor, and selling price of similar, fairly recently sold properties in the neighborhood.
Locating a hard money lender in Parkland to finance your real estate project is not difficult, as long as the opportunity that lies before you is promising and offers a good potential for returns. Fill out the form or give us a call to talk about the property or properties you have in mind.