Hard Money Loans in Starke
Imagine you've stumbled upon this truly good deal on a fix and flip property you found in an ideal location, and you happen to be either a seasoned real estate investor or a first-timer who wants to try out flipping homes. Professional home flippers, like the young married couple on Flip or Flop, HGTV's reality flipping series, are capable of earning a gain of forty to fifty grand as an average on more than one occasion. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction talents have had a big part in their successes. On the other hand, you are convinced that your first class rehab and remodeling talents will assist you to do a superb job on this home — furthermore, you already have lined up one of the best contractors in the area to take on this job.
But how exactly do real estate investors obtain financing? For those who get in touch with a common lending institution, such as a bank for a loan, it can take a minimum of four to eight weeks for the approval to be completed and the funds to be sent out. Due to the fact all the sellers are wanting to find a fast closing, that does not seem like a good option to you at all.
Moreover, if you have an unfavorable credit score or don't have a regular source of income, it usually is harder to qualify for bank financing, considering the stricter loan criteria banks have issued as of late. So will inadequate financing stop you from sticking with your dream? Definitely not, because you also have the Starke, Florida hard money loan alternative.
A hard money home loan in Starke provides what is perhaps most important to real estate investors — a quick closing time of as little as fourteen days. And additionally, loan amounts can be done for up to 70% loan-to-value of the "as is" home's valuation, as determined by a licensed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank lending options. But once you consider these loans are not long-term mortgage loans, the rate of interest tends to be misleading. As it pertains to short-term loans of a handful of years or even less, you should look at them similar to any other expense for the project. Right after you remodel and sell the property, recuperating this expense is just like recuperating the one for stainless steel appliances you put in the house.
Moreover, even someone with bad credit will be able to qualify for a hard money mortgage. The applicant's credit score isn't the lone deciding factor for Starke hard money lenders — additionally, they consider the piece of real estate, its market value, its location, and its capacity to return their investment if things should not go as intended. Several other criteria that influence a borrower's eligibility for a hard money real estate loan can include how much money he is in a position to put into a down payment, his previous experience as a real estate investor, and price range of comparable, fairly recently sold properties in the vicinity.
So in case you have stumbled on a really great home to flip with a huge chance of returns, you've also found yourself a hard money lender in Starke who's ready to finance your rehab project. Complete the contact form on this page or give us a call and let's talk about your project.