Hard Money Loans in Dunedin
Suppose you've run across this excellent bargain for a fix and flip property you found in a terrific location, and you're either a seasoned real estate investor or a first-timer who really wants to try his hand at flipping. Most folks know that capable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, can readily make an average profit margin of $40,000 to $50,000 on their flips. And sure, they are helped in a big way due to their professional experience, auction abilities and familiarity with hard money loans. Nonetheless, your rehab and renovation knowledge isn't bad either — in any case, you have already identified an ideal building contractor to handle the job.
But how can you get the needed capital for flipping? A traditional lender, for instance a bank, takes at the very least one to two months to approve the financing and release the capital. Considering that all the home owners are looking for a fast closing, that doesn't appear to be a great idea to you at all.
With banks bringing in harder loan criteria in the last few years, it's become more difficult for a self-employed individual to find a mortgage loan, particularly if his credit situation is not flawless. So will inadequate funds stop you from following your aspirations? Most certainly not, given that you always have the Dunedin, Florida hard money loan alternative.
A hard money home loan in Dunedin gives you what is perhaps most essential to real estate investors — a fast closing time of as little as 2 weeks. Furthermore, hard money lenders are able to do lending up to 70% LTV of the property or home value, as established by a licensed third-party appraiser. Some people regard hard money real estate loans to be more costly than ordinary loans, because the lending rates of such loans commonly start out at 10%. But if you appreciate that these loans are not long-term loans, the interest rate tends to be misleading. Short-term loans of a couple months to a handful of years are best understood as cost of capital, very much like all other expenses associated with a project. Once you have turned the property and have made a successful gain, you'll be able to recover this expense from the house — the same as recouping the money spent on the brand-new kitchen appliances that you've put in.
Moreover, even an individual with bad credit can still be eligible for a hard money mortgage. Instead of focusing entirely on the person's credit score or source of income, Dunedin hard money lenders, who could be a privately owned company or an individual person, say yes to a loan as a result of assessing the property value, how easy it will be to market, its location, and the likelihood of getting back their money in case of foreclosure. Several other variables that impact a borrower's approval for a hard money real estate loan include the amount he is in a position to put into a down payment, his prior experience being a real estate investor, and selling price of similar, recently sold properties in the area.
So if you have stumbled on a really good real estate opportunity with a high chance of returns, you've also stumbled upon a hard money lender in Dunedin that is ready to fund your fix and flip ventures. Submit the contact form or call us to discuss your project.
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