Hard Money Loans in Hallandale Beach
Imagine you've encountered this truly good bargain for a fix and flip property located in a great neighborhood, and you're either a seasoned real estate investor or a first-timer who really wants to try out flipping homes. You've probably heard that professional property flippers, like the married couple on HGTV's Flip or Flop, have a remarkable average profit margin close to $40,000 – $50,000. Naturally, you also know that their great results are attributed to the simple fact that they are experts, are knowledgeable in hard money loans, they know market trends really well and they also know how to work a public auction to purchase their properties at a good deal. On the other hand, you're convinced that your impressive rehab and remodeling skills can help you do a superb job for this home — furthermore, you've already arranged to have one of the premier building contractors in town to work on the job.
But financing is a separate question entirely. When you approach a common lending institution, much like a bank for a mortgage loan, it can take, at a minimum, 30-60 days for your acceptance to come through and the funds to be furnished. So if you will be expecting a fast closing, you need to recognize that this may set you back by a couple weeks, causing you to lose out on the opportunity.
As well as this, should you have a sub-optimal credit rating or do not have a routine income, it usually is harder to qualify for bank financing, seeing the more stringent loan guidelines banks have issued of late. So does that mean you have no option, but to abandon your dream of venturing into rehabbing? By no means, considering that you could always use the Hallandale Beach, Florida hard money loan approach to pay for your rehab project.
A hard money home loan in Hallandale Beach provides what's considered imperative to most real estate transactions — a very fast closing of only a 2-3 weeks and sometimes less. Furthermore, hard money lenders can approve funding up to 70% LTV of the property's valuation, as determined by a professional third-party appraiser. A number of people regard hard money real estate loans to be more costly than regular loans, because the lending rates of such loans often start off at 10%. But in reality, the interest rate isn't as useful a measure for these loans, simply because they are not long-term loans. When it comes to short-term loans of 1 or 2 years or less, you should look at them identical to any other expense for your project. Right after you rehab and unload the home, recouping this expense is no different than recouping the money you spent for home appliances you put in the house.
Also, it is simple to be eligible for a a hard money mortgage, even if your credit situation is not that impressive. The applicant's credit score is not the single deciding factor for Hallandale Beach hard money lenders — additionally, they evaluate the house, how much it is worth, where it is located, and its potential to bring back their financial commitment if things do not go as planned. The amount that an applicant can put upfront for the house, his past real estate experience, and price range of equivalent properties in the neighborhood are other factors that go into analyzing a person's eligibility for a hard money real estate loan.
So should you come across a good and worthwhile flipping opportunity, rest assured you'll have a hard money lender in Hallandale Beach, in a position to loan you the funds you will need. Submit the form or get in touch with us via phone and let's talk about the project you have in mind.
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