Hard Money Loans in Andalusia

There's this amazing opportunity to rehab and flip this nice outdated home in a fantastic area and it looks like the deal you've been wanting for quite some time. You may have heard that professional property flippers, much like the married couple on HGTV's Flip or Flop, have a remarkable average profit margin near $40,000 – $50,000. Undoubtedly, you also are aware that their great results are attributed to the fact that they are professionals, are proficient in hard money loans, they know the market really well and additionally, they know how to work a public auction to purchase their houses at a reasonable deal. Nonetheless, your rehab and remodeling skills aren't bad either — in any case, you have already located a good building contractor to handle the job.

But financing is usually a different issue altogether. If you meet with a regular lender, such as a bank for a mortgage loan, it can take, at a minimum, 30-60 days for the acceptance to be completed and the money to be sent out. Given that sellers give preference to a fast closing, it may be advisable to begin looking for some other financing options.

To add to it, banks have already been tightening their lending standards as of late, rendering it more hard for a person to obtain a typical home loan if their credit rating is not perfect or he doesn't have a consistent salaried occupation. So must you admit defeat and abandon your dream to venture off into fix and flips? Certainly not, on the grounds that you could always go the hard money loan route to finance your rehab project.

A hard money home loan in gives you what's deemed imperative to many real estate transactions — a fast closing of just a couple of weeks and more often than not even less. Also, hard money lenders are able to do loans up to 70% LTV of the home value, as calculated by a certified third-party appraiser. A number of people regard hard money real estate loans to be more costly than standard financing, considering interest rates for such loans commonly start out at 10%. But once you consider these loans are not long-term mortgage loans, the rate tends to be misleading. The price of such short-term loans should be looked at on par with any other cost that you would encounter during the project. Once you've resold the house and have made a good financial gain, you'll be able to get back this expense from the home — very much like recovering the cost of brand-new home appliances that you've installed.

Aside from that, hard money mortgages are easy qualifying, even when you have got less-than-perfect credit. The person's credit score will not be the primary determining factor for hard money lenders — they also consider the piece of real estate, its market valuation, where it is located, and its capacity to bring back their financial commitment if things should not work out as intended. How much a borrower can put down beforehand towards the property, his past real estate experience, and price range of equivalent properties in the same area are additional factors that go into ascertaining an applicant's suitability for a hard money real estate loan.

Locating a hard money lender in to finance your real estate project is not difficult, assuming that the opportunity in front of you is promising and offers a strong prospect for returns. Fill out the form on this page or get in touch with us via phone to talk about your property or properties.

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Investment property loans only please, no primary residences at this time.