Hard Money Loans in South Miami
A fabulous deal on a fix and flip opportunity in an excellent area of the city all of a sudden shows up — sounds so good that it is hard to believe. You may have heard that competent property flippers, like the married couple on HGTV's Flip or Flop, have an impressive average return near forty to fifty thousand dollars. Without question, their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction skills have been major factors to their results. On the other hand, you're convinced that your superb rehab and renovation skills can help you do a superb job on this property — what's more, you already have arranged to have one of the most sought after contractors in the area to take care of this project.
But funding is usually a different problem altogether. A conventional lending institution, like for example a bank, takes at a minimum 1-2 months to authorize the mortgage and provide the capital. So if you happen to be looking for a fast closing, you have to recognize that this may set you back by a couple of weeks, causing you to lose out on the home.
On top of this, banks have been tightening their lending criteria in recent times, making it tough for people to obtain a typical loan if their credit situation is not perfect or he does not possess a regular salaried job. So does that mean you are without an option, but to give up your ambition to venture into home renovating? Never, because you can always use the South Miami, Florida hard money loan approach to finance your home renovating project.
A hard money home loan in South Miami offers you what's deemed crucial to many real estate sales — a quick closing of just a 2-3 weeks and at times less. Aside from that, loans are made up to 70% loan-to-value of the as-is home's valuation, as deemed by a professional appraiser. At first, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank financing. But if you understand these loans are not long-term loans, the interest rate tends to be misleading. The price tag on such short-term loans should be considered much like every other expenditure that you would encounter in the course of the project. Once you've turned the property or home and have made a successful financial gain, you can recover this expense from the property or home — the same as recovering the cost of brand-new home appliances that you installed.
Moreover, even an individual with poor credit will be able to qualify for a hard money mortgage. The borrower's credit score is not the single deciding factor for South Miami hard money lenders — in addition, they look at the property, its market valuation, its location, and its potential to earn back their financial commitment if things should not go as planned. On top of that, if the applicant have proven experience in similar real estate ventures, can place down money for the down payment, and the cost of similar homes in the area works in his favor, he has got a very good shot of being approved to get a hard money real estate loan.
So should you come across an outstanding and lucrative flipping opportunity, rest assured you'll have a hard money lender in South Miami, prepared to loan you the cash you need. Complete the contact form or call us to discuss the property or properties you have in mind.