Hard Money Loans in Florence
Suppose you've encountered this truly good bargain on a fix and flip property located in a terrific neighborhood, and you happen to be either an experienced real estate investor or a first-timer who really wants to try out flipping houses. Expert property flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of generating a profit of forty to fifty grand on a consistent basis. And sure, they are helped in a major way due to their professional knowledge, auction abilities and knowledge of hard money loans. Still, your rehab and renovation skills aren't bad either — besides, you've already located an ideal building contractor to start the job.
But funding is usually a different question altogether. For those who approach a common lender, such as a bank for a mortgage loan, it's in all likelihood going to take, at the very least, 4-8 weeks for your approval to be completed and your money to be furnished. Given that sellers prefer a fast closing, you might want to begin seeking out additional funding options.
As well as this, in case you have a less-than-perfect credit score or don't receive a regular income source, it is normally harder for you to be eligible for bank financing, considering the tighter loan guidelines banks have issued of late. So do you have to give up and abandon your desire to venture into real estate? Most certainly not, because you always have the Florence hard money loan alternative.
A hard money home loan in Florence offers you what's regarded as crucial to most real estate transactions — a quick closing of just a couple of weeks and more often than not less. And additionally, loan amounts are made up to 70% loan-to-value of the as-is house value, as established by a licensed appraiser. Some individuals regard hard money real estate loans to be higher in price than ordinary financing, considering lending rates for these loans usually start out at 10%. But the time frames of these loans tend to be relatively shorter, making the interest rate much less important. Short-term loans of a couple months to a handful of years are best looked at as cost of capital, similar to all other expenditures involved with a project. Right after you fix up and resell the home, recuperating this expense is the same as recovering the expense for home appliances you placed into the house.
Moreover, even individuals with bad credit can still qualify for a hard money mortgage. The applicant's credit score will not be the single deciding factor for Florence hard money lenders — additionally, they analyze the piece of real estate, its market valuation, its location, and its ability to earn back their investment if things should not work out as planned. Adding to that, if the individual have proven experience in similar real estate projects, can place down cash towards the down payment, and the price of equivalent properties in the vicinity works to his benefit, he has a very good chance of being eligible for a hard money real estate loan.
So should you come across a good and profitable investment opportunity, feel comfortable knowing you'll have a hard money lender in Florence, prepared to loan you the cash that you need. Submit the contact form or get in touch with us via phone to discuss your project.
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