Hard Money Loans in St Augustine
Suppose you've run into this really great deal on a fix and flip property in an ideal location, and you are either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. Most folks know that expert professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can turn an average profit of forty to fifty thousand dollars when they rehab properties. Undoubtedly, you also are aware that their successes can be credited to the fact that they are professionals, are proficient in hard money loans, they understand the marketplace quite well and additionally, they are good at working a public auction to buy their properties at an appropriate deal. Still, your rehab and renovation knowledge isn't bad either — besides, you've already found the right building contractor to take on the project.
But how do you find the needed financing for flipping? In the event you opt for a traditional loan via a bank, you will need to wait approximately one to two months up until the time the loan is approved and the funding is readily available. Because most home owners wish to have a fast closing, it may be best to start searching for some other financing options.
With banks adding more challenging loan requirements in the past several years, it is tougher for a self-employed individual to get a mortgage loan, especially when his credit circumstances are not perfect. So will a lack of funds stop you from sticking to your ambitions? Certainly not, given that you always have the St Augustine, Florida hard money loan option.
A hard money home loan in St Augustine can provide what's viewed as vital to many real estate sales — a quick closing of only a couple of weeks and oftentimes even less. What's more, the LTV value can reach up to 70% of the property value, as determined by a credentialed appraiser. Some individuals believe hard money real estate loans to be more expensive than ordinary loans, because the lending rates of such loans usually start at 10%. But the lengths of these loans are quite short, which makes the rate far less significant. The price of such short-term loans should be evaluated much like every other financial outlay that you might encounter during the project. And as soon as you have finally turned the home, recovering this expense is identical to recuperating the expense for all the kitchen and bath updates you performed.
Additionally, it is easy to obtain a hard money mortgage, even in the event your credit rating is not that great. The person's credit score will not be the single determining factor for St Augustine hard money lenders — additionally, they evaluate the property, how much it is worth, its location, and its capability to return their investment if things should not work out as planned. On top of that, if the borrower can demonstrate prior experience in comparable real estate ventures, can place down money towards a down payment, and the price of equivalent homes in the vicinity works in his favor, he has a good chance of qualifying for a hard money real estate loan.
So any time you run into an outstanding and worthwhile flipping opportunity, relax knowing you will have a hard money lender in St Augustine, in a position to loan you the capital you may need. Enter your info into the contact form on this page or get in touch with us via phone to talk about your project.