Hard Money Loans in Florence
A remarkable buy on a fix and flip opportunity in an excellent neighborhood all of a sudden shows up — seems too good to be true. A majority of people know that expert professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, are able to make an average profit of $40,000 to $50,000 on their home projects. And yes, they are aided in a major way via their professional know-how, auction expertise and understanding of hard money loans. Still, your rehab and renovation skills aren't that bad either — besides, you've already found a suitable general contractor to start the home.
But where precisely can real estate investors obtain money? If you opt for a normal bank loan, you will end up waiting roughly one to two months up until the financing is authorized and your funding is available. Because most sellers favor a fast closing, you may have to start looking for some other funding options.
With banks bringing in more challenging loan requirements in the past few years, it's become more difficult for a self-employed individual to obtain a mortgage loan, especially when his credit score is not optimal. So will a shortage of financing keep you from following your dream? Under no circumstances, particularly while Florence hard money loans will assist you to realize many amazing things in the real estate world.
A hard money home loan in Florence boasts what's probably most crucial to real estate investors — a fast closing time of as little as two weeks. Further, loan amounts can be made up to 70% loan-to-value of the as-is valuation, as deemed by a licensed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more costly than bank lending products. But once you consider these loans are not long-term home loans, the rate can be misleading. As it pertains to short-term loans of a handful of years or even less, you should think of them similar to any kind of other expense for your project. After you rehab and sell the home, recovering this expense is just like recovering the one for new kitchen appliances you installed in the place.
Apart from this, hard money mortgages are easy qualifying, even if you have below-average credit. The customer's credit score is not the sole deciding factor for Florence hard money lenders — they also analyze the house, its market valuation, its location, and its capability to bring back their investment if things should not go as intended. Additional criteria that have an impact on a borrower's approval for a hard money real estate loan include how much he is in a position to put towards a down payment, his previous experience being a real estate investor, and price range of comparative, fairly recently sold homes nearby.
So if you have stumbled upon a really great real estate opportunity with a significant prospect of returns, you've also found yourself a hard money lender in Florence that's willing to finance your flipping venture. Fill out the contact form on this page or give us a call and let's discuss the property or properties you have in mind.
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