Hard Money Loans in St Petersburg
A remarkable bargain on a fix and flip opportunity in a very good area of the city suddenly turns up — seems so good that it's hard to believe. Everyone knows that skilled professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, are able to generate an average profit of $40,000 to $50,000 on their home projects. And yes, they are helped in a major way via their professional know-how, auction abilities and familiarity with hard money loans. However, you're certain that your first class rehab and renovation abilities will enable you to do a great job on this project — what's more, you've already arranged to have one of the best general contractors in town to take care of the job.
But where can you find the necessary financing for flipping? A typical lender, say for example a bank, takes at least 1 to 2 months to authorize the mortgage and deliver the money. Since most home owners would rather have a fast closing, it may be advisable to begin seeking out additional financing options.
To add to it, banks have already been tightening up their lending criteria as of late, making it hard for people to obtain a conventional loan if their credit situation is not perfect or he does not possess a consistent salaried profession. So will a lack of financing keep you from following your aspirations? By no means, on the grounds that you could always go the St Petersburg hard money loan route to finance your home flipping project.
A hard money home loan in St Petersburg, Florida offers you what's viewed as crucial to many real estate transactions — a very fast closing of only a couple of weeks and oftentimes less. In addition, the LTV value can reach up to 70% of the home's valuation, as evaluated by a competent appraiser. With loan rates starting near 10%, hard money real estate loans might appear, at first glance, to be more costly when compared with traditional bank financing. But when you understand these loans are not long-term mortgage loans, the rate of interest tends to be misleading. Short-term loans of a couple of months to a few years are best thought of as cost of capital, the same as any other financial outlay related to a project. And as soon as you've sold the house, recuperating this expense is identical to recovering the expense for the bathroom upgrades you performed.
What's more, it is easy to qualify for a hard money mortgage, even if your credit rating is not that superb. St Petersburg hard money lenders do not approve a loan solely on the basis of the borrower's credit score — instead they will assess the property, where it is located and what it is worth, and the home's capacity to pay back the loan by itself. Other factors that impact an applicant's approval for a hard money real estate loan can include the amount he can put into a down payment, his previous experience as a real estate investor, and selling price of comparative, just recently sold homes in the area.
So should you run into an outstanding and worthwhile flipping opportunity, feel comfortable knowing you'll have a hard money lender in St Petersburg, Florida, able to lend you the funds you'll need. Complete the form on this page or call us to talk about the property or properties you have in mind.