Hard Money Loans in Davenport
A fabulous deal on a fix and flip property located in a nice neighborhood shows up out of the blue — sounds too good to be true. Expert home flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are capable of hauling in a profit of forty to fifty grand as an average on more than one occassion. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction skills have had a significant part in their successes. Still, your rehab and remodeling knowledge isn't bad either — besides, you've already identified an ideal contractor to handle the home.
But how can you obtain the necessary funding for flipping? A typical lending institution, say for example a bank, takes no less than one to two months to consent to the financing and release the capital. Since most home owners wish to have a fast closing, you might need to begin looking for additional funding options.
With banks bringing in harder loan criteria in recent years, it is now harder for a self-employed person to obtain a home loan, particularly if his credit score is not optimal. So will a lack of financing stop you from following your ambitions? Certainly not, seeing as you always have the Davenport hard money loan alternative.
A hard money home loan in Davenport gives you what is considered crucial to most real estate transactions — a quick closing of just a few weeks and sometimes even less. Also, hard money lenders will often consent to loans up to 70% LTV of the home value, as identified by a credentialed third-party appraiser. With the interest rates starting out around 10%, hard money real estate loans might appear, at first glance, to be more pricey compared to traditional bank financing. But usually, the lending rate isn't as relevant for these loans, given that they will never be long-term financing. The price tag on such short-term loans should be viewed on par with any other expenditure that you would have to meet pertaining to the project. And as soon as you've sold the house, recuperating this expense is identical to recouping the expense for all the bathroom upgrades you did.
Additionally, it is simple to be eligible for a hard money mortgage, even in the event your credit rating is not that extraordinary. As an alternative for focusing solely on the applicant's credit score or source of income, Davenport hard money lenders, who could be a private company or an individual, authorize a loan after evaluating the property value, how easy it will be to market, where it is located, and the odds of getting back their money in case of foreclosure. Several other factors that have an impact on an individual's eligibility for a hard money real estate loan include what amount of money he can put towards a down payment, his former experience as a real estate investor, and price range of comparable, fairly recently sold homes in the vicinity.
So any time you run into a very good and profitable flipping opportunity, relax knowing you'll have a hard money lender in Davenport, in a position to lend you the capital you will need. Submit the contact form on this page or call us and let's discuss the property you have in mind.
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