Hard Money Loans in Southwest Ranches
A remarkable deal on a fix and flip opportunity located in a nice area of the city shows up out of the blue — seems so good that it's hard to believe. Expert home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are able to generate a profit of $40-$50k on a regular basis. Undoubtedly, you also understand that their great results can be attributed to the simple fact that they are professionals, are knowledgeable in hard money loans, they understand market trends really well and additionally, they are good at working an auction to purchase their houses at a good price. On the other hand, you're convinced that your superb rehab and remodeling abilities can help you do a great job on the home — additionally, you already have lined up one of the most sought after contractors in the business to work on the project.
But funding is usually a separate question entirely. Should you apply for a normal loan from the bank, you will have to wait roughly one to two months before the financing is approved and the money is ready. So if you will be hoping for a fast closing, you have to be aware that this may cost you a couple of weeks, causing you to miss out on the home.
With banks introducing more challenging loan requirements in the past several years, it is tougher for a self-employed person to obtain a home loan, especially if his credit score is not perfect. So will a lack of funds prevent you from following your aspirations? By no means, because you can always go the Southwest Ranches, Florida hard money loan route to pay for your rehab project.
A hard money home loan in Southwest Ranches offers what is deemed imperative to most real estate sales — a fast closing of just a 2-3 weeks and oftentimes even less. Further, loans are made up to 70% loan-to-value of the as-is home's valuation, as established by a licensed appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank lending products. But the term lengths for these loans are much shorter, which means the interest rate is less important. Short-term loans of several months to a handful of years are best thought of in terms of cost of capital, the same as any other financial outlay associated with a project. After you remodel and sell off the home, recouping this expense is the same as recouping the one for home appliances you placed into the place.
What's more, it is easy to be eligible for a hard money mortgage, regardless if your credit score is not that impressive. The borrower's credit score is not the single determining factor for Southwest Ranches hard money lenders — additionally, they consider the property, its market value, where it is located, and its potential to bring back their financial commitment if everything does not work out as planned. Adding to that, if the borrower can demonstrate past experience in equivalent real estate endeavors, can place down cash for the down payment, and the price of similar properties in the vicinity works in his favor, he stands a very good chance of being approved to get a hard money real estate loan.
So in case you have stumbled on a really great real estate opportunity with a huge probability of returns, you've also discovered a hard money lender in Southwest Ranches that's willing to finance your flipping project. Complete the contact form or get in touch with us via phone and let's talk about your property.