Hard Money Loans in Tarpon Springs
Imagine you've run into this truly good deal on a fix and flip property you found in a great neighborhood, and you're either a skilled real estate investor or a first-timer who hopes to try his hand at flipping. Most folks know that skilled professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, can turn an average profit of $40,000 to $50,000 on their home projects. It goes without saying their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction skills have played a big part in their success. Nevertheless, you're assured that your impressive rehab and remodeling skills will enable you to do an outstanding job on this house — in addition, you already have lined up one of the best building contractors in the business to take on the job.
But how do you get the needed capital for flipping? In the event you get in touch with a customary lending institution, such as a bank for a loan, it's in all likelihood going to take a minimum of thirty to sixty days for your approval to be completed and the funds to be accessible. Thus if you happen to be hoping for a fast closing, it's important for you to be aware that this could cost you a couple of weeks, causing you to miss out on the home.
On top of this, banks have already been tightening their lending requirements in recent times, rendering it more difficult for people to get a conventional loan if their credit score is not perfect or he does not have a regular salaried occupation. So do you have to give up and forego your dream to venture into fix and flips? Never, considering that you can always go the Tarpon Springs, Florida hard money loan route to fund your flipping project.
A hard money home loan in Tarpon Springs can provide what's considered imperative to most real estate sales — a fast closing of just a few weeks and at times less. Plus, the LTV value can reach up to 70% of the home's valuation, as evaluated by a competent appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be higher in price than bank lending options. But the term lengths for these loans are comparatively shorter, making the rate less significant. The cost of such short-term loans ought to be evaluated much like any other expenditure that you will have to meet pertaining to the project. After you remodel and sell the house, recovering this expense is no different than recovering the cost of the stainless steel appliances you placed into the house.
Aside from that, hard money mortgages are easy qualifying, whether or not you posses a weak credit score. Tarpon Springs hard money lenders do not approve a loan exclusively judging by the borrower's credit score — instead they will look at the home, its location and value, and the home's capacity to pay back the loan independent of the person. Adding to that, if the individual can demonstrate prior experience in comparable real estate endeavors, can put down cash towards a down payment, and the value of comparative properties in the neighborhood works in his favor, he stands an excellent likelihood of qualifying to obtain a hard money real estate loan.
So should you come across an outstanding and profitable flipping opportunity, feel comfortable knowing you'll have a hard money lender in Tarpon Springs, willing to lend you the money you'll need. Fill out the form or get in touch with us via phone and let's talk about the property or properties you have in mind.