Hard Money Loans in Jacksonville
You discovered this outstanding possibility for rehabbing and flipping this nice out of date property or home in a fantastic part of town and it looks like the one you've been looking forward to for quite a while. Everyone knows that capable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, are able to turn a typical profit of forty to fifty thousand dollars on their flips. Naturally, you also realize that their results are attributed to the fact that they're experts, are well versed in hard money loans, they know the marketplace really well and in addition, they are good at working a public auction to purchase their properties at an appropriate deal. That said, you've recently been brushing up your rehab and remodeling knowledge, have a building contractor ready to go and are certain that you're capable of doing a stellar job on this property.
But money is a separate question altogether. When you get in touch with a customary lender, much like a bank for a mortgage loan, it can take a minimum of four to eight weeks for your approval to be completed and the funds to be accessible. Given that sellers favor a fast closing, it may be best to start looking for additional financing alternatives.
Furthermore, if you have a less-than-perfect credit rating or do not have a regular income source, it usually is more challenging for you to qualify for a bank loan, considering the stricter loan guidelines banks have put in place in recent times. So will a lack of funds prevent you from sticking to your dream? Under no circumstances, especially when Jacksonville hard money loans enable you to realize many amazing things in the real estate world.
A hard money home loan in Jacksonville provides what's probably most sought after by real estate investors — a fast closing time period of as few as 2 weeks. Furthermore, hard money lenders are able to do lending up to 70% LTV of the home value, as estimated by a credentialed third-party appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more pricey than bank lending products. But when you consider these loans are not long-term mortgage loans, the interest rate may be misleading. Short-term loans of a couple of months to a few years are best understood as cost of capital, similar to any other expenditure in connection with a project. Once you've resold the property or home and have made a positive return, you'll be able to recoup this expense from the property or home — the same as recovering the cost of brand-new kitchen appliances that you have put in.
Besides, hard money mortgages are not difficult to qualify for, even in the event you have got very bad credit. As an alternative for focusing strictly on the borrower's credit score or net income, Jacksonville hard money lenders, who can be a private company or an individual, authorize a loan after analyzing the home value, how easy it will be to market, where it is located, and the possibility of getting back their money in case they have to foreclose the loan. Additional variables that have an impact on a borrower's eligibility for a hard money real estate loan include the amount he is able to put towards a down payment, his previous experience as a real estate investor, and selling price of comparative, just recently sold homes in the area.
So if you have found an excellent fixer-upper with a huge chance of returns, you've also discovered a hard money lender in Jacksonville that's happy to fund your fix and flip venture. Fill out the form or call us and let's discuss the property you have in mind.
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