Hard Money Loans in Palmetto Bay
Suppose that you've run into this excellent deal for a fix and flip property located in an ideal location, and you happen to be either a skilled real estate investor or a newbie who wants to try out flipping houses. You've probably heard that veteran property flippers, like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit near $40,000 - $50,000. Undoubtedly, you also know that their results are attributed to the simple fact that they are industry experts, are well versed in hard money loans, they understand market trends really well and in addition, they know how to work a public auction for getting a good deal. Nonetheless, your rehab and renovation knowledge isn't bad either — besides, you have already found an ideal building contractor to take on the home.
But where do real estate investors obtain capital? If you opt for a regular bank loan, you will need to wait around roughly 1 to 2 months up until the time the mortgage loan is approved and the funds are readily available. So if you will be looking for a fast closing, it is important to be aware that this could cost you a couple of weeks, making you lose out on the house.
To add to it, banks have already been tightening up their lending requirements in recent times, rendering it more hard for someone to get an ordinary home loan if their credit rating is not perfect or he does not have a regular salaried profession. So do you have to stop trying and abandon your dream to venture off into real estate? By no means, because you could always use the Palmetto Bay, Florida hard money loan approach to pay for your home flipping project.
A hard money home loan in Palmetto Bay offers what's deemed vital to many real estate deals — a fast closing of only a few weeks and at times less. Besides that, hard money lenders can approve lending up to 70% LTV of the property or home's valuation, as established by a credentialed third-party evaluation. With the rates starting off around 10%, hard money real estate loans might seem, initially, to be higher priced as compared with conventional bank loans. But the lengths of these loans tend to be much shorter, which makes the interest rate far less important. The cost of such short-term loans should be evaluated on par with every other expenditure that you might encounter during the project. Once you have sold the house and have made a positive return, you're able to reclaim this expense from the property or home — much like recovering the cost of brand-new kitchen appliances that you've installed.
Besides, hard money mortgages are not hard to qualify for, whether or not you have a bad credit score. Palmetto Bay hard money lenders don't approve a loan exclusively on the basis of the borrower's credit score — instead they additionally look at the property, its location and value, and the home's capability to pay back the loan by itself. How much an individual can put down in advance for the property or home, how much experience he has in real estate investing, and selling price of equivalent properties in the same vicinity are additional factors that go into analyzing a person's qualification for a hard money real estate loan.
So if you have stumbled on a really good fixer-upper with a significant potential for returns, you have also stumbled upon a hard money lender in Palmetto Bay who is willing to finance your flipping venture. Enter your info into the contact form or give us a call to talk about the property or properties you have in mind.