Hard Money Loans in Tavares
A remarkable deal on a fix and flip opportunity in a good area of the city shows up out of the blue — sounds so good that it is difficult to believe. You may have heard that professional house flippers, much like the husband and wife on HGTV's Flip or Flop, have an impressive average profit of around forty to fifty thousand dollars. No need to explain that their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction talents have been major factors to their successes. On the other hand, you're assured that your impressive rehab and renovation talents will help you do a quality job on the house — what's more, you have already lined up one of the finest general contractors in the area to work on the job.
But funding is a different problem altogether. In the event you get in touch with a customary lending institution, much like a bank for a mortgage loan, it in all likelihood will take a minimum of four to eight weeks for the approval to come through and your money to be furnished. So if you're looking for a fast closing, you must be aware that this will cost you a couple of weeks, causing you to lose out on the home.
With banks introducing more challenging loan guidelines in recent years, it is much harder for a self-employed individual to obtain a mortgage loan, especially when his credit situation is not optimal. So will a shortage of funding keep you from following your ambitions? Certainly not, given that you always have the Tavares, Florida hard money loan alternative.
A hard money home loan in Tavares offers what's considered vital to many real estate deals — a very fast closing of just a 2-3 weeks and at many times even less. Further, loans are made up to 70% loan-to-value of the as-is value, as calculated by a qualified appraiser. With interest rates starting at about 10%, hard money real estate loans might seem, at first, to be more expensive in comparison with traditional bank loans. But usually, the interest rate is not as useful a measure for these loans, since they are not long-term loans. When it comes to short-term loans of a handful of years or even less, you should look at them much like you would other expenses for the project. After you fix up and resell the house, recuperating this expense is the same as recovering the one for stainless steel appliances you put in the place.
Furthermore, even an individual with weak credit can easily qualify for a hard money mortgage. Tavares hard money lenders do not approve a loan solely on the basis of the applicant's credit score — rather they also examine the property, where it is located and what it is worth, and the home's capability to pay back the financing without the assistance of the applicant. How much money an individual can put down in advance for the home, how much practical experience he has in real estate investments, and selling price of comparative homes in the same area are other factors that go into determining a person's suitability for a hard money real estate loan.
So in the event you run into a very good and worthwhile flipping opportunity, relax knowing you will have a hard money lender in Tavares, able to loan you the money you may need. Complete the form or get in touch with us via phone and let's discuss the property you have in mind.