Hard Money Loans in Sunny Isles Beach
A remarkable deal on a fix and flip opportunity located in a good neighborhood all of a sudden shows up — sounds so good that it is hard to believe. You've heard that professional home flippers, such as the husband and wife on HGTV's Flip or Flop, have a remarkable average profit margin close to $40,000 - $50,000. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction skills have been large factors to their successes. Still, your rehab and renovation skills aren't that bad either — aside from that, you have already located a good licensed contractor to handle the home.
But where precisely can real estate investors get financing? A traditional lending institution, for instance a bank, takes no less than 1 to 2 months to consent to the mortgage and release the funds. So if you will be anticipating a fast closing, it's important for you to recognize that this may cost you a couple of weeks, making you miss out on the opportunity.
With banks introducing more challenging loan requirements in the last few years, it has become harder for a self-employed individual to get a home loan, particularly if his credit situation is not optimal. So do you have to stop trying and forego your aspiration to get into the real estate market? Certainly not, because you also have the Sunny Isles Beach, Florida hard money loan option.
A hard money home loan in Sunny Isles Beach boasts what is probably most important to real estate investors — a quick closing time of as little as fourteen days. Further, financing can be made up to 70% loan-to-value of the as-is property value, as calculated by a licensed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank lending options. But the term lengths for these loans are rather short, which means the rate is far less important. The price tag on such short-term loans should be looked at much like any other expense that you would encounter during the project. Once you have turned the property and have made a successful profit, you're able to recover this expense from the property or home — just like recuperating the money spent on the brand-new home appliances that you installed.
Aside from that, hard money mortgages are easy qualifying, even when you posses a weak credit score. The person's credit score isn't the exclusive determining factor for Sunny Isles Beach hard money lenders — they also consider the home, its market value, where it is located, and its capacity to return their investment if everything does not work out as intended. The total amount that a borrower can put down in advance for the home, how much practical experience he has in real estate investments, and price range of comparable homes in the same area are various other factors that go into determining an applicant's qualification for a hard money real estate loan.
Locating a hard money lender in Sunny Isles Beach to fund your renovation project is not very hard, as long as the opportunity that lies ahead of you is promising and offers a strong prospect for returns. Enter your info into the contact form or call us and let's discuss your project.