Hard Money Loans in Bartow
Suppose that you've encountered this excellent bargain on a fix and flip property located in an ideal location, and you're either a seasoned real estate investor or a newbie who really wants to try out flipping homes. Professional property flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are able to earn a profit of forty to fifty grand on a regular basis. No need to explain that their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have played a significant part in their success. With that being said, you have also been brushing up your rehab and renovation skills, have a very good building contractor ready to go and are certain that you will be able to do a bang up job on this house.
But how do you get the necessary financing for home flipping? For those who apply for a normal loan via a bank, you will need to wait around roughly 1-2 months until eventually the financing is approved and your funds are ready. Since most sellers give preference to a fast closing, it may be best to start looking for other funding options.
Furthermore, if you have a less-than-perfect credit situation or don't have a conventional income, it may be more difficult for you to be eligible for a a bank loan, with the stricter loan requirements banks have issued lately. So does this mean you are without an option, but to drop your aspiration of venturing into home renovating? Definitely not, because you also have the Bartow, Florida hard money loan alternative.
Should you apply for a hard money home loan in Bartow, you will get what is perhaps most important to real estate transactions across the country — a quick closing of approximately 2 weeks. Plus, the LTV value can range up to 70% of the property's valuation, as evaluated by a credentialed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank loans. But in reality, the interest rate is not as useful a measure for these loans, because they will never be long-term loans. The cost of such short-term loans should be looked at much like every other expenditure that you will have to meet pertaining to the project. And when you've finally sold the property, recouping this expense is comparable to recovering the expense for the bathroom or other improvements you did.
In addition, even a person with low credit can still qualify for a hard money mortgage. Bartow hard money lenders don't take on a loan solely on the basis of the person's credit score — rather they additionally look at the home, its location and value, and the home's capability to pay back the loan independent of the person. Adding to this, if the applicant have proven experience in comparable real estate ventures, can put down cash for a down payment, and the value of comparative properties in the area works to his benefit, he will have a really good shot of qualifying for a hard money real estate loan.
So if you have stumbled on a really good home to flip with a high probability of returns, you have also found yourself a hard money lender in Bartow that's prepared to finance your flipping venture. Complete the form or get in touch with us via phone and let's talk about your property.
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