Hard Money Loans in Jacksonville
An outstanding bargain on a fix and flip opportunity located in an excellent area of the city all of a sudden shows up — sounds so good that it is hard to believe. Professional house flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are capable of bringing in a profit of $40-$50k on a regular basis. And indeed, they are aided in a big way due to their professional experience, auction expertise and familiarity with hard money loans. Nonetheless, your rehab and renovation knowledge isn't bad either — aside from that, you've already located a suitable general contractor to handle this project.
But how do you find the necessary financing for home flipping? A traditional lending institution, say for example a bank, takes at least 1-2 months to consent to the mortgage and release the monies. Because most sellers prefer a fast closing, you may want to begin looking for other financing options.
To add to it, banks have been tightening up their lending standards in recent times, rendering it more challenging for a person to get a typical home loan if their credit score is not flawless or he is lacking a consistent salaried occupation. So do you have to stop trying and forego your aspiration to venture into the real estate market? Absolutely not, seeing as you always have the Jacksonville hard money loan option.
A hard money home loan in Jacksonville provides what is perhaps most crucial to real estate investors — a fast closing time of as few as a few weeks. Plus, the LTV value can reach up to 70% of the property's valuation, as estimated by a competent appraiser. Some people believe hard money real estate loans to be more expensive than standard loans, considering interest rates for these loans normally start at 10%. But usually, the rate of interest isn't as useful a measure for these loans, since they aren't long-term loans. When it comes to short-term loans of one or two years or even less, you should look at them similar to every other expense for the project. Once you have resold the property or home and have made a positive profit, you're able to get back this expense from the home — similar to recovering the cost of brand-new kitchen appliances that you put in.
Besides, hard money mortgages are easy qualifying, even in the event you posses less-than-perfect credit. The applicant's credit score is not the primary determining factor for Jacksonville hard money lenders — additionally, they analyze the home, how much it is worth, its location, and its potential to return their investment if things should not go as planned. Several other criteria that affect a borrower's approval for a hard money real estate loan can include the amount he can put towards a down payment, his previous experience as a real estate investor, and price range of similar, recently sold residences in the area.
So in the event you come across a very good and worthwhile flipping opportunity, rest assured you'll have a hard money lender in Jacksonville, willing to lend you the funds you'll need. Complete the form on this page or call us and let's discuss the property or properties you have in mind.
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