Hard Money Loans in West Melbourne
There is this phenomenal opportunity to renovate and flip this nice outdated house in a good area and it looks a lot like the deal you have been looking forward to for quite a while. Everyone knows that knowledgeable professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, can generate an average profit margin of $40,000 to $50,000 in their rehab business. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have had an important role in their results. That said, you've likewise been brushing up your rehab and remodeling skills, have a building contractor lined up and are confident that you can do a bang up job on this house.
But where do you find the needed financing for flipping? For those who go after a traditional loan from the bank, you will wind up waiting roughly 30-60 days until the money is approved and the money is available. With the sellers looking for a fast closing, that does not appear like a good option to you whatsoever.
Furthermore, if you have a sub-optimal credit rating or don't have a regular income, it can be harder for you to obtain bank financing, considering the tougher loan guidelines banks have put in place recently. So will a lack of funding keep you from sticking with your ambitions? By no means, particularly when West Melbourne, Florida hard money loans enable you to accomplish many amazing things in the real estate market.
A hard money home loan in West Melbourne offers you what is deemed essential to many real estate sales — a fast closing of only a couple of weeks and more often than not less. Additionally, loans can be made up to 70% loan-to-value of the "as is" property value, as deemed by a professional appraiser. At first, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank lending options. But when you appreciate that these loans are not long-term mortgage loans, the rate may be misleading. When it comes to short-term loans of one or two years or less, you should look at them the same as you might for any other expenditure for the project. And when you have turned the house, recuperating this expense is comparable to recouping the expense for the bathroom or other improvements you did.
Aside from that, hard money mortgages are easy qualifying, even in the event you posses below-average credit. Instead of focusing exclusively on the person's credit score or source of income, West Melbourne hard money lenders, who may be a private company or an individual, authorize a loan as a result of evaluating the home value, ease of marketability, where it is located, and the possibility of recovering their capital should they have to foreclose the loan. On top of that, if the person can demonstrate prior experience in comparable real estate ventures, can place down cash for the down payment, and the value of similar properties in the vicinity works to his benefit, he will have an excellent shot of qualifying to obtain a hard money real estate loan.
So if you have stumbled on a really great real estate opportunity with a significant potential for returns, you've also stumbled upon a hard money lender in West Melbourne who's prepared to finance your rehab project. Submit the form or call us to talk about the project you have in mind.