Hard Money Loans in Florence
There's this amazing possibility for rehabbing and flipping this nice old property or home in a good part of town and it seems like the one you have been expecting for quite a while. You've probably heard that veteran house flippers, similar to the husband and wife on HGTV's Flip or Flop, turn an impressive average profit close to forty to fifty thousand dollars. Without question, their rehabbing experience, understanding of hard money loans, familiarity with the market, and auction talents have played a significant role in their results. Still, your rehab and renovation knowledge isn't bad either — besides, you've already found a good contractor to start this project.
But funding is often a separate question altogether. Should you apply for an ordinary loan from the bank, you will wind up waiting roughly 1-2 months until eventually the mortgage is authorized and your funds are readily available. So if you are hoping for a fast closing, you need to realize that this may set you back by weeks, making you miss out on the opportunity.
With banks establishing tougher loan requirements in the recent past, it is more challenging for a self-employed person to obtain a home loan, especially when his credit rating is not perfect. So should you admit defeat and abandon your dream to embark into real estate? Not at all, particularly when Florence hard money loans enable you to achieve great things in the real estate world.
Should you obtain a hard money home loan in Florence, you have access to what is probably most vital to real estate transactions throughout the country — a fast closing of around 14 days. And additionally, loan amounts can be done for up to 70% loan-to-value of the as-is home value, as established by a licensed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as higher in price than bank lending products. But once you appreciate that these loans are not long-term home loans, the interest rate may be misleading. Short-term loans of several months to a handful of years are best thought of as cost of capital, the same as every other expense associated with a project. And once you've flipped the home, recuperating this expense is comparable to recuperating the expense for the bathroom improvements you did.
Furthermore, even someone with weak credit can easily qualify for a hard money mortgage. Florence hard money lenders do not authorize a loan solely based on the customer's credit score — instead they will examine the property, its value and location, and the property's ability to pay back the loan by itself. On top of that, if the borrower have proven experience in similar real estate endeavors, can place down money for a down payment, and the cost of similar properties in the area works in his favor, he has a really good shot of being approved to get a hard money real estate loan.
So in the event you come across a very good and worthwhile investment opportunity, feel comfortable knowing you will have a hard money lender in Florence, prepared to lend you the money you may need. Submit the contact form or give us a call and let's talk about your property or properties.
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