Hard Money Loans in Gainesville
Suppose you've come across this really great deal on a fix and flip property you found in a terrific neighborhood, and you are either a skilled real estate investor or a first-timer who is looking to try out flipping houses. Most folks know that expert professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can make a typical profit of forty to fifty thousand dollars on their flips. Naturally, you also know that their results are credited to the fact that they are experts, are knowledgeable in hard money loans, they know the marketplace quite well and in addition, they are good at working an auction for getting a good price. However, you are certain that your superb rehab and renovation skills will help you do a quality job on the property — in addition, you've already lined up one of the best contractors in the business to take care of this job.
But financing is a different issue entirely. A standard lending institution, say for example a bank, takes at least one to two months to authorize the financing and hand over the cash. With all the sellers wanting a fast closing, that doesn't appear to be a good option to you whatsoever.
With banks introducing harder loan guidelines in the last few years, it's become harder for a self-employed individual to get a mortgage loan, especially if his credit situation is not optimal. So will a lack of financing stop you from sticking with your dream? Most certainly not, given that you always have the Gainesville hard money loan option.
A hard money home loan in Gainesville provides what's probably most important to real estate investors — a fast closing in as little as fourteen days. Also, hard money lenders can do funding up to 70% LTV of the property or home's valuation, as identified by a licensed third-party evaluation. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as more costly than bank lending products. But when you appreciate that these loans are not long-term mortgage loans, the rate of interest tends to be misleading. The price of such short-term loans ought to be considered on par with any other cost that you would encounter during the project. After you remodel and unload the home, recovering this expense is just like recovering the expense for stainless steel appliances you placed into the house.
Also, it isn't difficult to be eligible for a a hard money mortgage, regardless of whether your credit rating is not that superb. The borrower's credit score will not be the lone determining factor for Gainesville hard money lenders — they also analyze the property, how much it is worth, its location, and its potential to earn back their investment if things should not work out as intended. Additional criteria that affect an individual's eligibility for a hard money real estate loan can include what amount of money he is in a position to put towards a down payment, his former experience being a real estate investor, and selling price of comparative, recently sold residences in the neighborhood.
So should you run into a really good and lucrative investment opportunity, be assured you'll have a hard money lender in Gainesville, able to loan you the capital that you need. Fill out the form on this page or call us and let's talk about the property or properties you have in mind.
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