Hard Money Loans in Fort Lauderdale
A fabulous deal on a fix and flip opportunity in an excellent subdivision shows up out of the blue — seems so good that it's difficult to believe. Professional home flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are able to generate a profit of forty to fifty grand on a consistent basis. Without question, their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have played a significant part in their successes. Still, your rehab and remodeling knowledge isn't that bad either — besides, you've already found an ideal building contractor to start this project.
But where precisely do real estate investors obtain money? A conventional lender, like for example a bank, takes at least one to two months to consent to the mortgage and hand over the cash. Thus if you are looking for a fast closing, it is important you recognize that this could set you back by a couple of weeks, causing you to miss out on the opportunity.
With banks adding tougher loan guidelines in the recent past, it is now much harder for a self-employed individual to obtain a mortgage loan, especially when his credit circumstances are not perfect. So do you have to give up and forego your desire to get into the real estate market? By no means, because you could always go the Fort Lauderdale, Florida hard money loan route to finance your home renovating project.
A hard money home loan in Fort Lauderdale promises what's possibly most crucial to real estate investors — a very fast closing time of as few as fourteen days. And additionally, loans can be made up to 70% loan-to-value of the "as is" house value, as deemed by a licensed appraiser. A number of people consider hard money real estate loans to be higher priced than ordinary financing, because the lending rates for these loans usually start off at 10%. But in reality, the interest rate is not as useful a measure for these loans, because they aren't long-term loans. When it comes to short-term loans of 1 or 2 years or less, you should consider them much like you would other expenses for the project. After you rehab and resell the house, recovering this expense is the same as recouping the money you spent for new kitchen appliances you installed in the home.
Furthermore, even individuals with poor credit will be able to be eligible for a hard money mortgage. The customer's credit score is not the exclusive determining factor for Fort Lauderdale, Florida hard money lenders — they also consider the piece of real estate, how much it is worth, where it is located, and its potential to bring back their financial commitment if things do not work out as planned. The amount that an applicant can put down in advance towards the home, his real estate experience, and price range of comparable properties in the same neighborhood are other factors that go into establishing an individual's suitability for a hard money real estate loan.
Searching for a hard money lender in Fort Lauderdale to cover expenses for your flipping business is not hard, as long as the opportunity in front of you is promising and has a strong prospect for returns. Complete the form or call us and let's discuss the project you have in mind.