Hard Money Loans in Deerfield
Suppose you've come across this excellent deal for a fix and flip property you found in a great location, and you are either a skilled real estate investor or a first-timer who wants to try out flipping houses. Expert property flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to bring in a gain of forty to fifty grand on average. Naturally, you also recognize that their results are attributed to the fact that they're experts, are knowledgeable in hard money loans, they know market trends really well and additionally, they know how to work a public auction for getting a good price. Nonetheless, your rehab and remodeling skills aren't that bad either — aside from that, you have already identified a good general contractor to take on the project.
But how do you obtain the needed funding for home flipping? For those who apply for a regular loan from the bank, you will have to wait approximately one to two months until the money is approved and the money is readily available. So if you're wishing for a fast closing, it's important for you to realize that this could cost you a couple weeks, causing you to miss out on the sale.
To add to it, banks have been tightening up their lending criteria as of late, which makes it difficult for people to get a regular loan if their credit situation is not flawless or he does not possess a consistent salaried job. So will a lack of funding prevent you from sticking to your dream? Certainly not, because you could always use the Deerfield hard money loan approach to fund your rehab project.
A hard money home loan in Deerfield provides what's regarded as essential to most real estate transactions — a fast closing of only a 2-3 weeks and oftentimes even less. Aside from that, loans can be done for up to 70% loan-to-value of the "as is" property value, as deemed by a licensed appraiser. With loan rates starting off near 10%, hard money real estate loans might appear, initially, to be more pricey as compared with traditional bank lending products. But once you consider these are not long-term loans, the rate tends to be misleading. Short-term loans of several months to a handful of years are best understood in terms of cost of capital, much like any other expense related to a project. After you renovate and sell the home, recouping this expense is no different than recouping the cost of the stainless steel appliances you installed in the home.
Aside from that, hard money mortgages are not hard to qualify for, regardless if you posses a low credit score. Rather than focusing solely on the person's credit score or net income, Deerfield hard money lenders, who may be a privately owned company or an individual, say yes to a loan after evaluating the home value, its salability, where it is located, and the probability of recouping their capital in case of foreclosure. How much a person can put down in advance for the property or home, his past real estate experience, and price range of equivalent homes in the same vicinity are other details that go into establishing a borrower's eligibility for a hard money real estate loan.
Finding a hard money lender in Deerfield to fund your fix and flip endeavor is not hard, assuming that the opportunity that lies ahead of you is promising and has a strong prospect for returns. Fill out the form on this page or give us a call and let's talk about the property you have in mind.
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