Hard Money Loans in Delray Beach
Suppose that you've run across this truly good bargain on a fix and flip property in an ideal location, and you are either a skilled real estate investor or a first-timer who hopes to try his hand at flipping. You may have heard that professional house flippers, such as the husband and wife on HGTV's Flip or Flop, have an impressive average return close to $40,000 – $50,000. And indeed, they are helped in a major way due to their professional know-how, auction abilities and familiarity with hard money loans. Still, your rehab and renovation skills aren't that bad either — in any case, you've already found a good licensed contractor to handle the home.
But how exactly do real estate investors find funds? Should you get in touch with a customary lender, like a bank for a mortgage loan, it can take, at a minimum, 30-60 days for your acceptance to come through and your money to be dispersed. So if you will be wishing for a fast closing, you need to be aware that this may cost you a couple weeks, causing you to miss out on the house.
On top of this, banks have already been tightening up their lending criteria in recent times, which makes it hard for a person to get a typical home loan if their credit situation is not perfect or he does not possess a consistent salaried job. So does this leave you with no option, but to give up your ambition of getting into the fix and flip business? Absolutely not, seeing as you also have the Delray Beach, Florida hard money loan alternative.
A hard money home loan in Delray Beach provides what's considered crucial to many real estate transactions — a quick closing of just a 2-3 weeks and more often than not even less. What's more, the LTV value can range up to 70% of the property's valuation, as evaluated by a competent appraiser. A number of people believe hard money real estate loans to be more pricey than regular loans, considering interest rates for these loans commonly start at 10%. But once you consider these are not long-term loans, the rate may be misleading. When it comes to short-term loans of 1 or 2 years or less, you should look at them identical to any kind of other expense for your project. And once you've finally sold the house, recouping this expense is identical to recouping the expense for the kitchen and bath upgrades you did.
Besides, hard money mortgages are not difficult to qualify for, even when you have got a weak credit score. Rather than focusing only on the applicant's credit score or income, Delray Beach hard money lenders, who may be a private company or an individual person, say yes to a loan after analyzing the home value, its salability, its location, and the possibility of recouping their capital should they have to foreclose the loan. Several other factors that have an impact on an individual's approval for a hard money real estate loan can include the amount he is in a position to put towards a down payment, his prior experience as a real estate investor, and selling price of similar, recently sold homes in the vicinity.
So in the event you come across a very good and lucrative flipping opportunity, rest assured you will have a hard money lender in Delray Beach, Florida, willing to loan you the money you need. Enter your info into the form or give us a call to discuss your project.
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