Hard Money Loans in Pinellas Park
You discovered this amazing opportunity to fix and flip this wonderful outdated property in a fantastic location and it seems a lot like the one you have been eagerly waiting on for quite some time. Expert property flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping program, are able to generate a gain of $40-$50k as an average on more than one occasion. Without question, their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction skills have been large factors to their successes. Nonetheless, your rehab and remodeling skills aren't that bad either — besides, you have already identified an ideal licensed contractor to take on the home.
But where do you obtain the needed capital for flipping? A traditional lending institution, like for example a bank, takes at the very least one to two months to authorize the financing and provide the funds. Thus if you are anticipating a fast closing, you have to understand or know that this may set you back by a couple weeks, making you miss out on the sale.
With banks bringing in tougher loan standards in recent years, it is tougher for a self-employed individual to find a mortgage loan, particularly if his credit score is not flawless. So does this mean you have no option, but to abandon your dream of getting into home renovating? By no means, on the grounds that you can always go the Pinellas Park, Florida hard money loan route to fund your rehab project.
Should you opt for a hard money home loan in Pinellas Park, you have access to what is possibly most important to real estate purchases throughout the country — a fast closing of roughly two weeks. Further, loan amounts can be done for up to 70% loan-to-value of the "as is" home value, as established by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as costlier than bank financing. But once you appreciate that these loans are not long-term home loans, the rate of interest can be misleading. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, similar to all other expenses associated with a project. Right after you remodel and resell the property, recovering this expense is just like recuperating the cost of the new kitchen appliances you placed into the property.
Moreover, even a person with bad credit can easily qualify for a hard money mortgage. The customer's credit score is not the sole determining factor for Pinellas Park hard money lenders — in addition, they look at the property, how much it is worth, its location, and its capacity to bring back their financial commitment if things should not go as planned. On top of that, if the person have proven experience in similar real estate endeavors, can place down money for the down payment, and the cost of similar houses in the neighborhood works to his benefit, he has got a very good chance of qualifying to obtain a hard money real estate loan.
So in case you have stumbled on a wonderful real estate opportunity with a high prospect of returns, you've also stumbled upon a hard money lender in Pinellas Park that's ready to provide financing for your flipping project. Submit the form on this page or give us a call to talk about the property or properties you have in mind.