Hard Money Loans in St Pete Beach
Suppose that you've come across this really great bargain for a fix and flip property located in a terrific location, and you happen to be either an experienced real estate investor or a first-timer who hopes to try out flipping houses. You've heard that professional home flippers, such as the husband and wife on HGTV's Flip or Flop, turn an impressive average profit margin near forty to fifty thousand dollars. Undoubtedly, you also understand that their successes are credited to the simple fact that they are professionals, are knowledgeable in hard money loans, they understand the market really well and they also are good at working an auction to purchase their houses at a good price. That said, you have recently been brushing up your rehab and remodeling skills, have got a licensed contractor ready to go and are confident that you can do a stellar job on this home.
But how can you get the needed financing for home flipping? Should you apply for a traditional bank loan, you will have to wait roughly 4-8 weeks before the mortgage is authorized and your money is accessible. With all the home owners wanting a fast closing, that doesn't appear like a good idea to you at all.
To add to it, banks have already been tightening their lending criteria in recent years, which makes it tough for a person to obtain a typical loan if their credit situation is not perfect or he doesn't have a consistent salaried job. So should you give up and abandon your desire to embark into fix and flips? Never, considering that you could always go the St Pete Beach, Florida hard money loan route to fund your home flipping project.
A hard money home loan in St Pete Beach can provide what is viewed as vital to many real estate transactions — a quick closing of just a 2-3 weeks and oftentimes less. And additionally, financing can be made up to 70% loan-to-value of the "as is" property value, as calculated by a professional appraiser. Some individuals believe hard money real estate loans to be higher priced than standard loans, because the lending rates of such loans ordinarily start at 10%. But once you understand these are not long-term loans, the rate tends to be misleading. Short-term loans of a couple of months to a few years are best thought of as cost of capital, very much like every other expenditure related to a project. Once you've turned the home and have made a successful financial gain, you can recoup this expense from the property — very much like recouping the money spent on the brand-new kitchen appliances that you've installed.
Aside from that, hard money mortgages are easy qualifying, even if you have a weak credit score. St Pete Beach hard money lenders do not take on a loan strictly judging by the borrower's credit score — rather they also assess the property, its location and value, and the property's ability to pay back the loan without the assistance of the applicant. How much money an applicant can put down beforehand towards the property or home, his real estate experience, and price range of comparative properties in the same neighborhood are various other factors that go into determining a borrower's qualification for a hard money real estate loan.
Searching for a hard money lender in St Pete Beach to help with expenses for your fix and flip endeavor is not difficult, assuming that the opportunity in front of you is promising and has a strong potential for returns. Complete the contact form or get in touch with us via phone to talk about your property.