Hard Money Loans in South Pasadena
A fabulous bargain on a fix and flip property in an excellent subdivision all of a sudden shows up — seems too good to be true. You may have heard that competent house flippers, like the married couple on HGTV's Flip or Flop, have an impressive average return near $40,000 - $50,000. It goes without saying their past experiences rehabbing, understanding of hard money loans, familiarity with the market, and auction skills have played a significant role in their successes. That said, you've recently been brushing up your rehab and renovation skills, have a contractor ready for the project and are certain that you will be able to do a great job for this home.
But how can real estate investors find money? When you opt for a normal bank loan, you will have to wait around roughly one to two months until eventually the money is approved and the money is readily available. So if you are wishing for a fast closing, you need to understand or know that this may set you back by a couple weeks, causing you to miss out on the opportunity.
As well as this, should you have an unfavorable credit situation or do not have a conventional income source, it is usually more difficult to be eligible for a bank loan, with the more stringent loan guidelines banks have put in place as of late. So must you admit defeat and forego your ambition to embark into fix and flips? By no means, especially when South Pasadena, Florida hard money loans can help you accomplish many amazing things in real estate.
A hard money home loan in South Pasadena provides you with what's possibly most important to real estate investors — a quick closing in as few as fourteen days. And additionally, financing can be done for up to 70% loan-to-value of the as-is home value, as deemed by a licensed appraiser. Some individuals consider hard money real estate loans to be more costly than ordinary loans, considering interest rates of such loans typically start at 10%. But if you appreciate that these are not long-term mortgage loans, the interest rate tends to be misleading. Short-term loans of a couple months to a few years are best approached as cost of capital, very much like any other financial outlay in connection with a project. Once you've sold the house and have made a successful financial gain, you'll be able to get back this expense from the property or home — similar to recouping the money necessary for the brand-new kitchen appliances that you've installed.
Aside from that, hard money mortgages are not hard to qualify for, whether or not you posses very bad credit. Rather than focusing exclusively on the applicant's credit score or income, South Pasadena hard money lenders, who may be a privately owned company or an individual, approve a loan after assessing the home value, how easy it will be to market, its location, and the possibility of recuperating their capital in case they have to foreclose the loan. Adding to that, if the applicant have proven experience in similar real estate projects, can put down cash for a down payment, and the price of comparable properties in the neighborhood works to his benefit, he has a very good chance of being eligible to obtain a hard money real estate loan.
So if you have stumbled upon a really great home to flip with a high potential for returns, you've also stumbled upon a hard money lender in South Pasadena that's ready to fund your fix and flip project. Complete the form on this page or call us to discuss the property you have in mind.