Hard Money Loans in South Daytona
There is this outstanding opportunity to fix and flip this wonderful old condo in a very good location and it seems a lot like the one you have been expecting for a long time. You've heard that competent home flippers, like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit close to forty to fifty thousand dollars. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have played a significant part in their results. Still, your rehab and remodeling skills aren't that bad either — aside from that, you've already found an ideal building contractor to start the job.
But how do you obtain the needed financing for home flipping? For those who approach a standard lender, much like a bank for funding, it's more than likely going to take no less than 4-8 weeks for the approval to come through and the funds to be given out. So if you will be expecting a fast closing, it is important to be aware that this may set you back by a few weeks, making you lose out on the opportunity.
What's more, if you have a sub-optimal credit situation or do not have a conventional source of income, it can be more difficult to qualify for a bank loan, seeing the more stringent loan guidelines banks have issued in recent times. So does that mean you have no option, but to abandon your aspiration of venturing into home flipping? Absolutely not, given that you also have the South Daytona, Florida hard money loan option.
A hard money home loan in South Daytona can provide what's deemed crucial to most real estate transactions — a quick closing of just a few weeks and sometimes less. Plus, the LTV value can reach up to 70% of the property's valuation, as estimated by a certified appraiser. With lending rates starting around 10%, hard money real estate loans might appear, initially, to be more expensive when compared with conventional bank loans. But when you consider these loans are not long-term mortgage loans, the rate of interest may be misleading. Short-term loans of a couple of months to a few years are best thought of in terms of cost of capital, much like all other expenses in connection with a project. When you have turned the home and have made a good financial gain, you can recoup this expense from the home — very much like recuperating the money necessary for the brand-new appliances for the kitchen that you've installed.
In addition, even an individual with bad credit can still be eligible for a hard money mortgage. The person's credit score is not the exclusive deciding factor for South Daytona hard money lenders — additionally, they analyze the piece of real estate, its market valuation, its location, and its capacity to earn back their financial commitment if things should not go as intended. Adding to this, if the individual can demonstrate prior experience in similar real estate projects, can put down cash towards a down payment, and the price of comparative houses in the area works to his benefit, he has a good likelihood of being approved to obtain a hard money real estate loan.
So any time you come across a very good and lucrative flipping opportunity, rest assured you will have a hard money lender in South Daytona, willing to lend you the funds you will need. Fill out the form on this page or get in touch with us via phone to talk about the property you have in mind.