Hard Money Loans in Springfield
You discovered this phenomenal possibility for rehabbing and flipping this nice old home in a fantastic part of town and it seems like the deal you have been expecting for a long time. Everybody knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can readily turn a typical profit of forty to fifty thousand dollars when they flip properties. No need to explain that their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have had a big role in their results. Nevertheless, you are convinced that your superb rehab and renovation knowledge will enable you to do an outstanding job on the property — in addition, you already have lined up one of the best general contractors in the business to take care of the project.
But money is a different question altogether. If you opt for a traditional bank loan, you will need to wait somewhere around one to two months until the financing is approved and the funding is available. Given that home owners favor a fast closing, you might want to begin seeking out some other funding options.
To add to it, banks have been tightening their lending requirements in recent times, rendering it more tough for people to obtain a typical loan if their credit situation is not perfect or he doesn't have a regular salaried occupation. So does that leave you with no other option, but to abandon your aspiration of venturing into the fix and flip business? Under no circumstances, especially when Springfield, Florida hard money loans will assist you to achieve many amazing things in the real estate market.
Should you obtain a hard money home loan in Springfield, you will get what is probably most important to real estate negotiations throughout the country — a very fast closing of about 14 days. Furthermore, hard money lenders will often consent to lending up to 70% LTV of the property value, as assessed by a qualified third-party evaluator. At first, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank loans. But the time frames of these loans tend to be relatively shorter, making the rate much less important. The price tag on such short-term loans ought to be looked at on par with any other financial outlay that you would need to meet for the project. Once you have resold the property or home and have made a successful profit, you'll be able to reclaim this expense from the property or home — very much like recouping the cost of brand-new kitchen appliances that you put in.
Moreover, even an individual with weak credit can still be eligible for a hard money mortgage. Instead of focusing only on the borrower's credit score or net income, Springfield hard money lenders, who could be a privately owned company or an individual, say yes to a loan after examining the home value, ease of marketability, where it is located, and the possibility of getting back their money should they have to foreclose the loan. Several other variables that impact an individual's approval for a hard money real estate loan include what amount of money he is able to put into a down payment, his previous experience being a real estate investor, and price of similar, recently sold residences in the area.
So if you have found a wonderful real estate opportunity with a high probability of returns, you have also stumbled upon a hard money lender in Springfield who's happy to provide financing for your rehab projects. Enter your info into the contact form or call us and let's talk about the project you have in mind.