Hard Money Loans in Pembroke Pines
An incredible bargain on a fix and flip opportunity located in a nice subdivision suddenly shows up — seems so good that it's difficult to believe. Professional residential home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping show, are able to generate a gain of $40-$50k as an average on more than one occasion. It's fair to say their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction talents have been major factors to their success. With that being said, you've recently been brushing up your rehab and remodeling skills, have a general contractor ready for the project and are confident that you will be able to do an impressive job for this house.
But money is a different question entirely. If you get in touch with a standard lender, such as a bank for financing, it more than likely will take at least 30-60 days for your acceptance to come through and the money to be dispersed. With the home owners wanting a fast closing, that doesn't appear to be a good idea to you whatsoever.
On top of this, banks have already been tightening up their lending criteria as of late, which makes it difficult for someone to obtain a conventional loan if their credit situation is not flawless or he is lacking a regular salaried occupation. So will a lack of financing keep you from sticking to your dream? Under no circumstances, particularly when Pembroke Pines hard money loans enable you to achieve many amazing things in real estate.
A hard money home loan in Pembroke Pines, Florida can provide what's deemed crucial to many real estate transactions — a very fast closing of just a 2-3 weeks and at times even less. Furthermore, hard money lenders can do funding up to 70% LTV of the property or home's valuation, as determined by a qualified third-party appraiser. Some individuals believe hard money real estate loans to be higher priced than customary loans, considering lending rates for such loans typically start off at 10%. But in reality, the rate of interest isn't as useful a measure for these loans, since they aren't long-term loans. Short-term loans of a couple months to a handful of years are best approached as cost of capital, similar to every other expenditure related to a project. When you have resold the property or home and have made a successful profit, you can reclaim this expense from the property — just like recuperating the money necessary for the brand-new kitchen appliances that you have put in.
Moreover, even someone with poor credit can easily be eligible for a hard money mortgage. Pembroke Pines hard money lenders do not approve a loan solely according to the person's credit score — rather they also examine the property or home, its valuation and location, and the home's capability to pay back the loan independent of the person. The amount that an individual can put down in advance towards the house, his past real estate experience, and price range of comparable properties in the same vicinity are additional factors that go into analyzing a person's suitability for a hard money real estate loan.
So should you come across a good and lucrative flipping opportunity, relax knowing you will have a hard money lender in Pembroke Pines, Florida, prepared to loan you the funds that you need. Submit the contact form or give us a call to discuss the property you have in mind.