Hard Money Loans in Winter Haven
A fabulous buy on a fix and flip opportunity located in a nice neighborhood suddenly turns up — sounds so good that it is hard to believe. Everybody knows that knowledgeable professional flippers, like Tarek and Christina El Moussa who star in HGTV's reality home flipping program, Fix or Flop, can readily generate an average profit of forty to fifty thousand dollars in their rehab business. Undoubtedly, you also know that their successes can be attributed to the fact that they are experts, are proficient in hard money loans, they understand the marketplace really well and they also are good at working a public auction to buy their homes at a good price. Still, your rehab and remodeling skills aren't bad either — besides, you've already identified an ideal contractor to take on this job.
But where can you obtain the necessary capital for home flipping? A standard lender, say for example a bank, takes at a minimum one to two months to approve the financing and release the funds. Given that home owners give preference to a fast closing, you might need to start searching for other financing options.
With banks adding tougher loan standards in the last few years, it is tougher for a self-employed person to get a mortgage loan, especially if his credit rating is not optimal. So does this mean you are without an option, but to abandon your dream of getting into the fix and flip business? Most certainly not, given that you also have the Winter Haven, Florida hard money loan alternative.
A hard money home loan in Winter Haven gives you what is perhaps most important to real estate investors — a very fast closing time period of as little as 2 weeks. Aside from that, financing is made up to 70% loan-to-value of the "as is" property's valuation, as established by a qualified appraiser. With lending rates starting near 10%, hard money real estate loans may seem, at first glance, to be more costly compared to conventional bank loans. But usually, the rate of interest is not as pertinent for these loans, given that they are not long-term loans. The price of such short-term loans should be evaluated much like every other financial outlay that you would have to meet for the project. After you renovate and resell the home, recovering this expense is just like recouping the one for new kitchen appliances you placed into the home.
Moreover, even individuals with low credit can still be eligible for a hard money mortgage. As an alternative for focusing entirely on the applicant's credit score or income, Winter Haven hard money lenders, who may be a privately owned company or an individual person, authorize a loan after evaluating the property value, its marketability, its location, and the probability of recuperating their money in the event of foreclosure. How much an individual can put upfront towards the property or home, his real estate experience, and selling price of comparative properties in the area are additional details that go into analyzing an applicant's suitability for a hard money real estate loan.
Finding a hard money lender in Winter Haven to help with expenses for your real estate project is not hard, so long as the opportunity before you is promising and has a strong prospect for returns. Submit the contact form or call us and let's talk about the project you have in mind.