Hard Money Loans in Pensacola
There is this amazing possibility for fixing and flipping this nice outdated home in a fantastic part of town and it seems a lot like the deal you have been expecting for a long time. Many people know that skilled professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can earn a typical profit of $40,000 to $50,000 on their home projects. And without a doubt, they are aided in a big way by their professional knowledge, auction expertise and understanding of hard money loans. Nonetheless, your rehab and renovation knowledge isn't bad either — aside from that, you've already identified the right contractor to handle the home.
But how can real estate investors find financing? A conventional lender, like for example a bank, takes a minimum of 1 to 2 months to approve the financing and provide the funds. With the home owners looking for a fast closing, that does not appear to be a good option to you whatsoever.
To add to it, banks have been tightening up their lending standards in recent times, which makes it hard for a person to receive a regular home loan if their credit rating is not flawless or he is lacking a regular salaried profession. So does that leave you with no option, but to abandon your aspiration to venture into the fix and flip business? Absolutely not, because you also have the Pensacola, Florida hard money loan option.
A hard money home loan in Pensacola gives you what is probably most important to real estate investors — a very fast closing time period of as few as a few weeks. Plus, the LTV value can go up to 70% of the property value, as evaluated by a competent appraiser. With loan rates starting around 10%, hard money real estate loans might seem, at first, to be more costly in comparison with conventional bank loans. But usually, the lending rate isn't as pertinent for these loans, simply because they are not long-term loans. Short-term loans of a couple months to a few years are best approached as cost of capital, similar to every other expense involved with a project. Once you've turned the property or home and have made a successful gain, you'll be able to recover this expense from the home — just like recouping the money necessary for the brand-new home appliances that you have put in.
Apart from this, hard money mortgages are easy qualifying, regardless if you have very bad credit. Instead of focusing entirely on the person's credit score or source of income, Pensacola hard money lenders, who can be a private company or an individual, say yes to a loan after assessing the home value, its marketability, where it is located, and the possibility of recuperating their capital in the event of foreclosure. Additional criteria that influence an individual's approval for a hard money real estate loan include how much money he can put towards a down payment, his previous experience as a real estate investor, and price range of similar, fairly recently sold properties nearby.
Searching for a hard money lender in Pensacola to finance your flipping business is not hard, assuming that the opportunity in front of you is promising and possesses the right potential for returns. Fill out the form on this page or call us and let's talk about your project.