Hard Money Loans in DeFuniak Springs
An incredible bargain on a fix and flip opportunity in a good area of the city all of a sudden shows up — sounds so good that it is difficult to believe. You may have heard that professional property flippers, similar to the married couple on HGTV's Flip or Flop, enjoy a remarkable average profit near $40,000 – $50,000. Naturally, you also understand that their successes can be credited to the simple fact that they are professionals, are proficient in hard money loans, they know market trends really well and furthermore, they are good at working a public auction for getting a good price. Still, your rehab and renovation knowledge isn't bad either — besides, you have already found a suitable general contractor to tackle the home.
But where can you obtain the needed financing for flipping? A traditional lender, like for example a bank, takes no less than 1-2 months to consent to the financing and hand over the monies. Thus if you happen to be expecting a fast closing, you have to recognize that this could cost you weeks, causing you to lose out on the opportunity.
On top of this, banks have already been tightening up their lending criteria in recent years, rendering it more challenging for people to receive an ordinary home loan if their credit situation is not flawless or he is lacking a consistent salaried job. So will a lack of funds keep you from sticking to your ambitions? By no means, on the grounds that you could always go the DeFuniak Springs, Florida hard money loan route to fund your home flipping project.
A hard money home loan in DeFuniak Springs offers what's deemed crucial to most real estate sales — a quick closing of only a 2-3 weeks and more often than not less. Furthermore, hard money lenders frequently agree to lending up to 70% LTV of the property value, as estimated by a professional third-party evaluation. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as higher priced than bank lending products. But the term lengths for these loans tend to be comparatively shorter, which makes the interest rate much less important. Short-term loans of a couple of months to a few years are best understood as cost of capital, much like all other expenses related to a project. And when you've flipped the home, recouping this expense is comparable to recovering the expense for all the kitchen and bath improvements you did.
Furthermore, even individuals with poor credit can easily qualify for a hard money mortgage. Rather than focusing strictly on the person's credit score or source of income, DeFuniak Springs hard money lenders, who could be a private company or an individual person, approve a loan after analyzing the property value, its salability, where it is located, and the probability of recouping their capital if they have to foreclose the loan. Additional criteria that influence a person's eligibility for a hard money real estate loan can include how much he is in a position to put into a down payment, his prior experience being a real estate investor, and selling price of similar, fairly recently sold homes nearby.
So should you come across a very good and lucrative flipping opportunity, feel comfortable knowing you will have a hard money lender in DeFuniak Springs, in a position to loan you the cash you may need. Submit the contact form or call us to discuss the project you have in mind.
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