Hard Money Loans in Lighthouse Point
An outstanding bargain on a fix and flip property in a good subdivision suddenly shows up — seems too good to be true. Most folks know that expert professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping series, Fix or Flop, can readily earn a typical profit of forty to fifty thousand dollars on their flips. Naturally, you also know that their success can be attributed to the fact that they're professionals, are knowledgeable in hard money loans, they know the marketplace quite well and they also know how to work a public auction for getting an appropriate price. However, you're convinced that your first class rehab and remodeling skills will help you do a superb job for this home — what's more, you already have lined up one of the premier contractors in town to take care of the job.
But money is a separate problem altogether. Should you approach a regular lender, much like a bank for a loan, it very likely will take at least thirty to sixty days for your approval to come through and your funds to be accessible. Since the majority of sellers give preference to a fast closing, it may be advisable to begin seeking out some other financing options.
With banks establishing tougher loan criteria in recent years, it's become harder for a self-employed individual to get a mortgage loan, especially when his credit situation is not perfect. So must you give up and abandon your ambition to embark into the real estate market? By no means, because you can always go the Lighthouse Point, Florida hard money loan route to pay for your home flipping project.
A hard money home loan in Lighthouse Point provides you with what's possibly most crucial to real estate investors — a fast closing time period of as few as 2 weeks. Also, hard money lenders will often consent to funding up to 70% LTV of the property or home value, as identified by a qualified third-party appraiser. With loan rates starting off near 10%, hard money real estate loans might seem, at first glance, to be more expensive as compared with conventional bank loans. But in reality, the lending rate isn't as relevant for these loans, simply because they are not long-term financing. The cost of such short-term loans should be viewed on par with any other expenditure that you might encounter in the course of the project. And when you have flipped the property, recuperating this expense is identical to recouping the expense for all the kitchen and bath improvements you performed.
Moreover, even someone with low credit will be able to be eligible for a hard money mortgage. As an alternative for focusing exclusively on the borrower's credit score or source of income, Lighthouse Point hard money lenders, who may be a private company or an individual, approve a loan after assessing the property value, how easy it will be to market, where it is located, and the possibility of recuperating their capital if they have to foreclose the loan. The total amount that an individual can put upfront for the home, his past real estate experience, and price range of comparative homes in the same vicinity are other details that go into analyzing an individual's suitability for a hard money real estate loan.
So any time you run into a good and profitable investment opportunity, relax knowing you'll have a hard money lender in Lighthouse Point, in a position to lend you the money you'll need. Complete the contact form or get in touch with us via phone to discuss the property you have in mind.