Hard Money Loans in Pompano Beach
Suppose you've come across this truly good bargain on a fix and flip property located in an ideal location, and you are either a seasoned real estate investor or a first-timer who really wants to try out flipping homes. Most folks know that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, can readily earn an average profit of forty to fifty thousand dollars when they flip properties. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction skills have played a big role in their results. On the other hand, you are convinced that your impressive rehab and remodeling skills can help you do a quality job on the house — in addition, you already have lined up one of the premier contractors in town to handle this job.
But how exactly do real estate investors find financing? In the event you approach a regular lender, much like a bank for a loan, it is very likely going to take, at a minimum, 30-60 days for your acceptance to be completed and your money to be furnished. Given that sellers favor a fast closing, you might need to start searching for some other funding options.
On top of this, banks have been tightening their lending criteria in recent years, rendering it more hard for someone to obtain an ordinary loan if their credit rating is not perfect or he doesn't have a consistent salaried profession. So will inadequate financing prevent you from following your dream? Definitely not, seeing as you always have the Pompano Beach hard money loan option.
A hard money home loan in Pompano Beach, Florida provides what's probably most essential to real estate investors — a fast closing time period of as little as fourteen days. In addition, the LTV value can go up to 70% of the property's valuation, as determined by a competent appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be higher priced than bank financing. But once you consider these are not long-term home loans, the rate tends to be misleading. Short-term loans of a couple of months to a handful of years are best looked at in terms of cost of capital, much like every other expenditure in connection with a project. And when you've turned the property or home, recovering this expense is identical to recuperating the expense for all the bathroom updates you performed.
Apart from this, hard money mortgages are not difficult to qualify for, even when you have a bad credit score. The customer's credit score isn't the primary determining factor for Pompano Beach hard money lenders — they also look at the property, what is it valued at, its location, and its capability to return their investment if everything does not go as planned. On top of this, if the applicant have proven experience in comparable real estate endeavors, can place down cash for the down payment, and the cost of similar properties in the neighborhood works in his favor, he has got a really good chance of being eligible for a hard money real estate loan.
Locating a hard money lender in Pompano Beach, Florida to cover expenses for your flipping business is not hard, as long as the opportunity in front of you is promising and possesses the right potential for returns. Submit the contact form or give us a call and let's discuss the property or properties you have in mind.