Hard Money Loans in Treasure Island
A fantastic buy on a fix and flip opportunity in a good subdivision all of a sudden shows up — seems so good that it's difficult to believe. Many people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, are able to make a typical profit of forty to fifty thousand dollars on their flips. And sure, they are helped in a major way by their professional experience, auction abilities and familiarity with hard money loans. Still, your rehab and remodeling skills aren't bad either — aside from that, you've already located a suitable licensed contractor to take on the job.
But money can be a separate question entirely. If you get in touch with a customary lender, much like a bank for a loan, it can take at least 30-60 days for the acceptance to come through and your money to be furnished. Thus if you happen to be expecting a fast closing, you must recognize that this may set you back by a couple of weeks, making you lose out on the opportunity.
With banks adding tougher loan criteria in the past few years, it has become more difficult for a self-employed person to obtain a mortgage loan, particularly if his credit rating is not optimal. So will a lack of funds prevent you from following your ambitions? Certainly not, because you also have the Treasure Island, Florida hard money loan option.
When you obtain a hard money home loan in Treasure Island, you'll get what is possibly most important to real estate purchases throughout the country — a fast closing of around 2 weeks. Plus, the LTV value can go up to 70% of the property value, as estimated by a competent appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, seem to be more expensive than bank lending options. But when you understand these loans are not long-term loans, the interest rate tends to be misleading. When it comes to short-term loans of 1 or 2 years or even less, you should think of them similar to every other expenditure for the project. And as soon as you've turned the property, recovering this expense is identical to recovering the expense for all the bathroom or other improvements you did.
Additionally, it's simple to be eligible for a a hard money mortgage, even if your credit score is not that superb. Treasure Island hard money lenders do not approve a loan solely based on the person's credit score — instead they also examine the home, its value and location, and the home's capacity to pay back the financing by itself. Adding to that, if the applicant can demonstrate past experience in similar real estate ventures, can put down money for the down payment, and the value of similar houses in the vicinity works in his favor, he has a good likelihood of being eligible to obtain a hard money real estate loan.
Locating a hard money lender in Treasure Island to fund your real estate project is not very challenging, provided that the opportunity in front of you is promising and has a good prospect for returns. Enter your info into the contact form on this page or call us to discuss your property or properties.