Hard Money Loans in West Palm Beach
A remarkable deal on a fix and flip opportunity located in a nice neighborhood shows up out of the blue — sounds too good to be true. You've heard that professional property flippers, such as the couple on HGTV's Flip or Flop, enjoy an impressive average profit near $40,000 - $50,000. It goes without saying their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction skills have played a significant part in their successes. Nonetheless, your rehab and remodeling knowledge isn't that bad either — besides, you've already found an ideal general contractor to start the home.
But where can you obtain the necessary capital for home flipping? When you opt for an ordinary loan via a bank, you will need to wait approximately 1 to 2 months up until the loan is approved and your funding is readily available. Since most sellers would rather have a fast closing, you may have to begin searching for some other funding alternatives.
As well as this, if you have an unfavorable credit rating or do not receive a consistent income source, it is usually tougher for you to be eligible for a a bank loan, with the more stringent loan requirements banks have issued in recent times. So must you stop trying and abandon your dream to embark into fix and flips? Never, on the grounds that you can always go the West Palm Beach hard money loan route to pay for your home flipping project.
A hard money home loan in West Palm Beach, Florida promises what's probably most important to real estate investors — a fast closing time of as little as a few weeks. What's more, the LTV value can go up to 70% of the home's valuation, as evaluated by a certified appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank lending options. But usually, the rate of interest isn't as relevant for these loans, because they are not long-term financing. Short-term loans of a couple of months to a handful of years are best looked at as cost of capital, similar to all other expenditures associated with a project. Right after you renovate and sell the property, recovering this expense is no different than recouping the one for home appliances you placed into the house.
In addition, even an individual with poor credit can still be eligible for a hard money mortgage. Rather than focusing primarily on the borrower's credit score or wages, West Palm Beach hard money lenders, who can be a private company or an individual, say yes to a loan as a result of analyzing the home value, how easy it will be to market, its location, and the possibility of getting back their money in case of foreclosure. Additional criteria that have an impact on an applicant's approval for a hard money real estate loan can include how much money he is able to put towards a down payment, his past experience as a real estate investor, and price of comparable, recently sold homes in the area.
If you happen to have stumbled upon a really good home to flip with a high probability of returns, you've also found yourself a hard money lender in West Palm Beach, Florida who is willing to provide funding for your rehab project. Fill out the form or give us a call and let's talk about the property or properties you have in mind.