Hard Money Loans in St Augustine Beach
An outstanding bargain on a fix and flip property located in a very good neighborhood suddenly shows up — sounds so good that it is hard to believe. A majority of people know that capable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, can turn an average profit margin of forty to fifty thousand dollars when they rehab properties. No need to explain that their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction talents have been large factors to their success. Having said that, you've likewise been brushing up your rehab and renovation skills, have a licensed contractor ready for the project and are certain that you're capable of doing an impressive job on this property.
But how can real estate investors get financing? A standard lending institution, for instance a bank, takes at the very least 1-2 months to approve the financing and provide the monies. With the sellers wanting a fast closing, that doesn't seem like a good option to you whatsoever.
Moreover, in case you have a less-than-perfect credit score or do not have a conventional income source, it is normally harder to be eligible for a bank financing, considering the stricter loan guidelines banks have introduced lately. So does that leave you with no option, but to give up your ambition to venture into rehabbing? Under no circumstances, especially when St Augustine Beach, Florida hard money loans enable you to realize many amazing things in the real estate world.
If you should get a hard money home loan in St Augustine Beach, you have access to what's possibly most essential to real estate transactions throughout the country — a quick closing of around 14 days. Furthermore, hard money lenders can do lending up to 70% LTV of the property or home's valuation, as estimated by a licensed third-party evaluator. With the loan rates starting near 10%, hard money real estate loans might seem, at first, to be more pricey in comparison with traditional bank financing. But in reality, the interest rate is not as useful a measure for these loans, 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 much like you would other expenses for your project. And when you have flipped the house, recouping this expense is identical to recuperating the expense for the bathroom or other updates you performed.
Besides, hard money mortgages are not difficult to qualify for, even if you have very bad credit. The applicant's credit score isn't the lone determining factor for St Augustine Beach hard money lenders — in addition, they evaluate the house, how much it is worth, where it is located, and its potential to return their financial commitment if things should not go as planned. The amount that an applicant can put down in advance towards the property, how much experience he has in real estate investing, and selling price of comparable homes in the same area are additional details that go into analyzing a person's qualification for a hard money real estate loan.
Finding a hard money lender in St Augustine Beach to cover expenses for your real estate project is not hard, so long as the opportunity before you is promising and offers the right potential for returns. Fill out the contact form or give us a call and let's discuss the property or properties you have in mind.