Hard Money Loans in St Cloud
There is this amazing opportunity to renovate and flip this wonderful old property or home in a good location and it looks like the deal you've been expecting for quite some time. You've probably heard that competent home flippers, much like the couple on HGTV's Flip or Flop, turn a remarkable average profit of around $40,000 - $50,000. And sure, they are helped in a big way as a result of their professional know-how, auction abilities and understanding of hard money loans. That said, you've recently been developing your rehab and renovation skills, have a general contractor ready for the project and are confident that you're capable of doing an impressive job for this house.
But how exactly do real estate investors find funding? Should you meet with a common lender, such as a bank for funding, it can take no less than 4-8 weeks for the acceptance to come through and your money to be given out. Thus if you are hoping for a fast closing, you need to be aware that this may cost you a couple of weeks, making you miss out on the home.
To add to it, banks have been tightening their lending standards in recent times, rendering it more challenging for a person to get a conventional loan if their credit situation is not perfect or he doesn't have a consistent salaried occupation. So must you admit defeat and abandon your ambition to venture into real estate? Certainly not, given that you always have the St Cloud, Florida hard money loan option.
A hard money home loan in St Cloud offers you what is considered imperative to most real estate transactions — a very fast closing of just a 2-3 weeks and at times even less. Furthermore, hard money lenders are capable of doing lending up to 70% LTV of the property or home value, as determined by a qualified third-party evaluator. At first, hard money real estate loans, with starting lending rates of 10%, seem to be more pricey than bank lending products. But once you consider these are not long-term loans, the interest rate may be misleading. Short-term loans of a couple of months to a handful of years are best approached in terms of cost of capital, much like every other expenditure involved with a project. Once you've sold the property or home and have made a good gain, you're able to reclaim this expense from the property or home — the same as recouping the cost of brand-new kitchen appliances that you installed.
Besides, hard money mortgages are easy qualifying, regardless if you have got very bad credit. St Cloud hard money lenders do not take on a loan exclusively judging by the applicant's credit score — rather they will examine the property, where it is located and what it is worth, and the property's ability to pay back the loan independent of the applicant. The amount that an individual can put down in advance for the property or home, how much practical experience he has in real estate investing, and selling price of comparative properties in the same vicinity are various other factors that go into establishing an individual's eligibility for a hard money real estate loan.
If you happen to have stumbled upon a really great real estate opportunity with a significant chance of returns, you have also discovered a hard money lender in St Cloud that is willing to finance your fix and flip ventures. Enter your info into the contact form on this page or get in touch with us via phone and let's discuss the property you have in mind.