Hard Money Loans in Gulf Shores

Imagine you've encountered this truly good bargain on a fix and flip property in a great location, and you're either an experienced real estate investor or a first-timer who wants to try out flipping homes. You may have heard that veteran home flippers, such as the couple on HGTV's Flip or Flop, enjoy an impressive average profit margin of around $40,000 – $50,000. Undoubtedly, you also know that their successes can be credited to the fact that they are industry experts, are proficient in hard money loans, they understand the marketplace quite well and in addition, they know how to work an auction to purchase their homes at a reasonable deal. That said, you've likewise been developing your rehab and remodeling knowledge, have a general contractor arranged and are positive that you're capable of doing a great job for this property.

But where do real estate investors get capital? A conventional lender, like for example a bank, takes at a minimum one to two months to authorize the financing and deliver the monies. With all the home owners looking for a fast closing, that doesn't seem like a good idea to you whatsoever.

What's more, if you have a less-than-perfect credit situation or don't receive a regular source of income, it may be tougher to obtain a bank loan, seeing the tougher loan criteria banks have issued in recent times. So does this leave you with no other option, but to abandon your dream to venture into rehabbing? Under no circumstances, especially while hard money loans can help you accomplish many amazing things in the real estate world.

A hard money home loan in offers what's deemed essential to many real estate deals — a quick closing of just a few weeks and more often than not even less. Aside from that, loan amounts can be made up to 70% loan-to-value of the "as is" home's valuation, as deemed by a qualified appraiser. Some individuals believe hard money real estate loans to be more expensive than ordinary financing, considering interest rates for these loans normally start at 10%. But once you appreciate that these loans are not long-term home loans, the interest rate can be misleading. Short-term loans of several months to a few years are best approached as cost of capital, the same as any other expense in connection with a project. After you renovate and sell the property, recouping this expense is no different than recuperating the one for home appliances you installed in the property.

Furthermore, even someone with bad credit can still be eligible for a hard money mortgage. The applicant's credit score is not the single determining factor for hard money lenders — additionally, they look at the home, its market value, its location, and its capacity to return their investment if everything does not work out as planned. Adding to that, if the person have proven experience in comparable real estate ventures, can put down cash towards a down payment, and the value of similar homes in the area works to his benefit, he has a very good chance of qualifying to obtain a hard money real estate loan.

Locating a hard money lender in to fund your fix and flip endeavor is not very challenging, so long as the opportunity in front of you is promising and boasts the right prospect for returns. Complete the form or get in touch with us via phone and let's talk about the property you have in mind.

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Investment property loans only please, no primary residences at this time.