Hard Money Loans in Wellington
Suppose you've encountered this truly good deal for a fix and flip property you found in a terrific location, and you are either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. Expert residential home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a gain of $40-$50k on most projects. It goes without saying their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction talents have played an important role in their results. That said, you've likewise been brushing up your rehab and renovation knowledge, have got a contractor ready to go and are positive that you will be able to do an impressive job for this house.
But capital is often a separate problem entirely. For those who approach a standard lending institution, like a bank for financing, it's more than likely going to take a minimum of thirty to sixty days for your acceptance to be completed and your funds to be accessible. So if you are anticipating a fast closing, it's important for you to understand or know that this may set you back by a few weeks, making you lose out on the house.
Moreover, if you have an unfavorable credit rating or don't receive a conventional income, it is usually more challenging to qualify for bank financing, seeing the stricter loan guidelines banks have issued of late. So does this leave you with no other option, but to abandon your dream to venture into home flipping? Not at all, particularly while Wellington, Florida hard money loans can help you realize great things in real estate.
A hard money home loan in Wellington provides what is probably most sought after by real estate investors — a very fast closing in as few as fourteen days. Furthermore, hard money lenders are able to do funding up to 70% LTV of the home's valuation, as identified by a credentialed third-party appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank lending products. But the term lengths for these loans tend to be much shorter, which makes the rate much less significant. The price of such short-term loans should be viewed on par with any other expense that you would encounter during the project. When you have sold the property and have made a positive return, you'll be able to recover this expense from the home — similar to recuperating the money necessary for the brand-new appliances for the kitchen that you've put in.
Also, it is easy to be eligible for a hard money mortgage, regardless of whether your credit situation is not that impressive. The borrower's credit score is not the single determining factor for Wellington hard money lenders — in addition, they evaluate the house, what is it valued at, where it is located, and its ability to return their financial commitment if things should not work out as planned. The total amount that an individual can put upfront for the home, his past real estate experience, and price range of comparative properties in the same neighborhood are various other factors that go into analyzing a borrower's suitability for a hard money real estate loan.
So if you have found a wonderful real estate opportunity with a high chance of returns, you have also discovered a hard money lender in Wellington who's ready to finance your fix and flip venture. Submit the contact form on this page or call us and let's discuss your property or properties.