Hard Money Loans in Sebring
An incredible deal on a fix and flip opportunity in a good neighborhood suddenly shows up — sounds so good that it's difficult to believe. Professional residential home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of bringing in a profit of $40-$50k for most homes. And yes, they are aided in a big way due to their professional know-how, auction abilities and understanding of hard money loans. Nonetheless, your rehab and remodeling knowledge isn't that bad either — aside from that, you've already found a suitable contractor to take on the job.
But where can you get the necessary capital for home flipping? Should you opt for a conventional loan from the bank, you will end up waiting around somewhere around 1 to 2 months up until the financing is approved and your money is ready. Since the majority of sellers favor a fast closing, you might need to begin looking for additional funding options.
As well as this, in case you have an unfavorable credit situation or do not have a routine income source, it can be harder for you to obtain bank financing, with the more stringent loan guidelines banks have introduced recently. So do you have to stop trying and abandon your desire to get into fix and flips? Most certainly not, seeing as you always have the Sebring, Florida hard money loan alternative.
A hard money home loan in Sebring offers you what's considered vital to most real estate sales — a very fast closing of just a few weeks and sometimes even less. Plus, the LTV value can range up to 70% of the home value, as estimated by a competent appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be costlier than bank lending options. But when you understand these are not long-term home loans, the interest rate can be misleading. As it pertains to short-term loans of one or two years or even less, you should look at them the same as you would for any other expense for your project. Once you've resold the house and have made a good profit, you're able to get back this expense from the property or home — the same as recouping the money spent on the brand-new kitchen appliances that you have installed.
In addition, even an individual with weak credit will be able to be eligible for a hard money mortgage. Rather than focusing only on the borrower's credit score or wages, Sebring hard money lenders, who could be a privately owned company or an individual person, authorize a loan as a result of assessing the property value, ease of marketability, its location, and the odds of recuperating their capital in case of foreclosure. On top of this, if the borrower have proven experience in equivalent real estate projects, can place down cash towards the down payment, and the cost of similar houses in the area works to his benefit, he has got a very good shot of being eligible to obtain a hard money real estate loan.
So should you come across a good and worthwhile investment opportunity, relax knowing you'll have a hard money lender in Sebring, willing to lend you the funds you need. Fill out the contact form on this page or call us to talk about the project you have in mind.