Hard Money Loans in Surfside
A fabulous bargain on a fix and flip property in a good area of the city all of a sudden shows up — sounds too good to be true. You may have heard that veteran home flippers, much like the married couple on HGTV's Flip or Flop, enjoy an impressive average profit margin near forty to fifty thousand dollars. And without a doubt, they are aided in a big way as a result of their professional experience, auction expertise and understanding of hard money loans. However, you're certain that your superb rehab and remodeling abilities will help you do a superb job for this home — additionally, you've already arranged to have one of the best building contractors in the business to take on this project.
But how can real estate investors get funds? A traditional lending institution, say for example a bank, takes at a minimum one to two months to consent to the loan and provide the funds. Given that home owners wish to have a fast closing, you may have to start seeking out other funding alternatives.
Moreover, if you have a less-than-perfect credit score or do not have a consistent income, it is usually tougher for you to be eligible for bank financing, seeing the tougher loan criteria banks have introduced recently. So will a lack of funds keep you from following your dream? Not at all, particularly while Surfside, Florida hard money loans enable you to accomplish great things in real estate.
A hard money home loan in Surfside provides what's considered essential to many real estate deals — a quick closing of only a 2-3 weeks and sometimes even less. Aside from that, loan amounts can be made up to 70% loan-to-value of the as-is home's valuation, as calculated by a licensed appraiser. With the rates starting near 10%, hard money real estate loans may appear, initially, to be more pricey in comparison with traditional bank financing. But when you appreciate that these loans are not long-term home loans, the rate can be misleading. Short-term loans of a couple of months to a handful of years are best approached as cost of capital, similar to any other expense involved with a project. Once you've sold the house and have made a positive gain, you can recoup this expense from the house — very much like recouping the cost of brand-new home appliances that you have installed.
Apart from this, hard money mortgages are not difficult to qualify for, regardless if you have got very bad credit. The customer's credit score isn't the lone determining factor for Surfside hard money lenders — they also look at the house, how much it is worth, its location, and its potential to earn back their investment if everything does not work out as intended. Other criteria that affect a person's eligibility for a hard money real estate loan can include how much he is in a position to put towards a down payment, his past experience as a real estate investor, and price of comparable, recently sold homes nearby.
So should you come across a good and lucrative flipping opportunity, rest assured you will have a hard money lender in Surfside, ready to loan you the cash that you need. Fill out the contact form on this page or get in touch with us via phone to discuss your project.