Hard Money Loans in Fort Meade
Suppose that you've stumbled upon this really great bargain for a fix and flip property you found in a terrific location, and you are either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. Expert residential home flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are able to earn a gain of forty to fifty grand on a consistent basis. Naturally, you also are aware that their great results are due to the fact that they are professionals, are well versed in hard money loans, they know market trends quite well and they also know how to work a public auction for getting a reasonable price. Still, your rehab and remodeling knowledge isn't bad either — in any case, you've already identified an ideal licensed contractor to start this home.
But how can you find the needed financing for flipping? A standard lender, for instance a bank, takes at a minimum 1-2 months to consent to the loan and hand over the funds. Because most sellers wish to have a fast closing, it may be best to start seeking out other financing alternatives.
With banks bringing in more challenging loan standards in the past few years, it's become much harder for a self-employed person to get a mortgage loan, especially when his credit rating is not optimal. So should you give up and abandon your aspiration to venture off into real estate? Definitely not, seeing as you always have the Fort Meade, Florida hard money loan option.
A hard money home loan in Fort Meade provides what is regarded as essential to most real estate deals — a very fast closing of just a few weeks and sometimes less. Plus, the LTV value can go up to 70% of the home's valuation, as evaluated by a credentialed appraiser. With rates starting around 10%, hard money real estate loans may appear, at first, to be higher priced compared to conventional bank financing. But if you understand these are not long-term home loans, the rate may be misleading. As it pertains to short-term loans of one or two years or less, you should consider them much like you would other expenses for your project. Right after you remodel and unload the house, recouping this expense is the same as recovering the money you spent for new kitchen appliances you installed in the place.
Furthermore, even individuals with weak credit can still be eligible for a hard money mortgage. Instead of focusing strictly on the applicant's credit score or wages, Fort Meade hard money lenders, who may be a private company or an individual person, approve a loan as a result of analyzing the home value, its salability, its location, and the likelihood of recovering their capital in case they have to foreclose the loan. Other criteria that impact a person's eligibility for a hard money real estate loan include the amount he can put into a down payment, his former experience as a real estate investor, and selling price of comparable, fairly recently sold residences in the neighborhood.
So in the event you come across an outstanding and lucrative flipping opportunity, be assured you will have a hard money lender in Fort Meade, ready to lend you the funds you need. Fill out the contact form on this page or get in touch with us via phone and let's talk about your property or properties.
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