Hard Money Loans in Tampa
An incredible buy on a fix and flip property in a very good neighborhood shows up out of the blue — seems too good to be true. You've heard that professional property flippers, much like the couple on HGTV's Flip or Flop, turn a remarkable average profit margin close to $40,000 - $50,000. Undoubtedly, you also recognize that their great results can be attributed to the simple fact that they're professionals, are knowledgeable in hard money loans, they understand the market really well and furthermore, they know how to work a public auction for getting an appropriate price. Nonetheless, your rehab and renovation knowledge isn't bad either — besides, you've already identified a suitable licensed contractor to handle this project.
But how do you obtain the needed funding for flipping? Should you opt for a regular bank loan, you will wind up waiting around somewhere around 30-60 days until the mortgage is authorized and your funds are ready to go. With all the home owners looking for a fast closing, that does not seem like a wise idea to you whatsoever.
With banks establishing tougher loan guidelines in recent years, it is more challenging for a self-employed individual to find a home loan, especially when his credit circumstances are not perfect. So do you have to give up and abandon your dream to embark into the real estate market? By no means, particularly when Tampa, Florida hard money loans can help you achieve many amazing things in the real estate market.
A hard money home loan in Tampa gives you what's regarded as essential to most real estate transactions — a quick closing of only a couple of weeks and at times even less. Furthermore, hard money lenders are able to do lending up to 70% LTV of the home value, as identified by a credentialed third-party evaluation. With loan rates starting out near 10%, hard money real estate loans might appear, at first glance, to be higher priced compared to traditional bank loans. But usually, the rate of interest is not as pertinent for these loans, simply because they are not long-term loans. Short-term loans of a couple months to a few years are best approached as cost of capital, similar to every other expense involved with a project. And as soon as you've turned the property or home, recouping this expense is identical to recovering the expense for the kitchen and bath improvements you did.
In addition, even individuals with weak credit will be able to be eligible for a hard money mortgage. Instead of focusing solely on the applicant's credit score or income, Tampa hard money lenders, who could be a privately owned company or an individual, authorize a loan after analyzing the home value, its salability, where it is located, and the possibility of getting back their capital in the event of foreclosure. How much an individual can put down in advance towards the house, how much experience he has in real estate investing, and price range of comparative homes in the same area are other factors that go into establishing a borrower's qualification for a hard money real estate loan.
So should you come across a really good and worthwhile investment opportunity, feel comfortable knowing you'll have a hard money lender in Tampa, Florida, willing to lend you the funds you'll need. Complete the contact form on this page or call us and let's discuss your property or properties.