Hard Money Loans in Naples
A fantastic bargain on a fix and flip opportunity located in a very good subdivision shows up out of the blue — sounds so good that it's hard to believe. Everyone knows that capable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, can readily turn a typical profit of forty to fifty thousand dollars on their flips. It goes without saying their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction skills have been major factors to their results. However, you're certain that your superb rehab and renovation talents can help you do a superb job on this project — furthermore, you already have lined up one of the premier contractors in the business to take on the project.
But financing is usually a separate question altogether. A typical lending institution, say for example a bank, takes no less than one to two months to approve the mortgage and provide the money. Due to the fact all the sellers want a fast closing, that does not appear like a wise idea to you in the slightest.
Furthermore, should you have a less-than-perfect credit rating or don't have a consistent income, it is normally more challenging for you to be eligible for a bank loan, with the stricter loan guidelines banks have put in place of late. So does this leave you with no other option, but to abandon your ambition of getting into flipping? Certainly not, given that you also have the Naples, Florida hard money loan option.
A hard money home loan in Naples offers you what's deemed vital to most real estate sales — a fast closing of only a 2-3 weeks and more often than not even less. Additionally, loan amounts are made up to 70% loan-to-value of the "as is" property's valuation, as deemed by a qualified appraiser. With the loan rates starting near 10%, hard money real estate loans may look, at first glance, to be more pricey as compared with traditional bank lending products. But usually, the lending rate is not as pertinent for these loans, simply because they aren't long-term financing. When it comes to short-term loans of a few years or even less, you should think about them similar to any kind of other expenditure for your project. When you have turned the property and have made a positive return, you'll be able to get back this expense from the property — similar to recovering the cost of brand-new appliances for the kitchen that you put in.
Furthermore, even individuals with weak credit will be able to qualify for a hard money mortgage. Naples hard money lenders don't take on a loan strictly on the basis of the borrower's credit score — instead they will look at the property or home, its location and value, and the home's capacity to pay back the loan by itself. The amount that a borrower can put down in advance towards the property, how much experience he has in real estate investments, and selling price of comparable homes in the same vicinity are additional factors that go into analyzing an individual's suitability for a hard money real estate loan.
Locating a hard money lender in Naples to help with expenses for your real estate project is not very hard, as long as the opportunity that lies before you is promising and possesses a strong prospect for returns. Fill out the form on this page or call us and let's discuss your project.