Hard Money Loans in Fort Myers
An incredible buy on a fix and flip opportunity in a nice area of the city all of a sudden shows up — sounds too good to be true. Professional residential home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping series, are able to generate a profit of $40-$50k on average. And sure, they are helped in a big way by their professional knowledge, auction expertise and familiarity with hard money loans. Having said that, you've also been brushing up your rehab and remodeling skills, have got a building contractor ready for the project and are confident that you can do a bang up job on this property.
But where do you find the needed financing for home flipping? Should you apply for an ordinary loan from the bank, you will have to wait somewhere around 1 to 2 months up until the time the loan is authorized and your funding is readily available. Since most home owners favor a fast closing, you may want to begin looking for some other funding options.
What's more, in case you have a sub-optimal credit situation or don't have a conventional source of income, it may be more difficult for you to qualify for bank financing, with the stricter loan guidelines banks have issued recently. So does that leave you with no option, but to drop your ambition to venture into home flipping? Never, considering that you could always use the Fort Myers hard money loan approach to finance your rehab project.
If you should get a hard money home loan in Fort Myers, Florida, you will get what is perhaps most important to real estate negotiations across the country — a very fast closing of around 2 weeks. Aside from that, loans can be made up to 70% loan-to-value of the "as is" house's valuation, as calculated by a professional appraiser. Some people believe hard money real estate loans to be higher in price than ordinary financing, considering lending rates for such loans often start out at 10%. But the lengths of these loans tend to be quite short, making the interest rate far less significant. Short-term loans of a couple months to a handful of years are best thought of in terms of cost of capital, similar to every other expenditure in connection with a project. And once you've turned the house, recuperating this expense is the exact same as recouping the expense for all the kitchen and bath upgrades you performed.
Besides, hard money mortgages are easy qualifying, even if you have got less-than-perfect credit. Instead of focusing entirely on the borrower's credit score or net income, Fort Myers hard money lenders, who may be a private company or an individual, say yes to a loan after assessing the property value, its salability, where it is located, and the odds of recovering their capital in case of foreclosure. Other criteria that have an impact on a person's acceptance for a hard money real estate loan can include what amount of money he can put towards a down payment, his previous experience being a real estate investor, and price of comparable, recently sold residences in the neighborhood.
Locating a hard money lender in Fort Myers, Florida to finance your renovation project is not very hard, so long as the opportunity in front of you is promising and possesses the right potential for returns. Complete the form on this page or call us and let's talk about the property you have in mind.