Hard Money Loans in St Cloud
Imagine you've encountered this truly good bargain for a fix and flip property you found in an ideal location, and you happen to be either a skilled real estate investor or a first-timer who is looking to try his hand at flipping. Everybody knows that skilled professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can turn a typical profit margin of forty to fifty thousand dollars in their rehab business. Naturally, you also realize that their results are attributed to the fact that they are professionals, are well versed in hard money loans, they know the market really well and additionally, they are good at working an auction for getting a good price. That said, you've recently been cultivating your rehab and renovation knowledge, have got a contractor ready for the project and are confident that you're capable of doing a stellar job for this house.
But where do you find the needed financing for home flipping? When you meet with a regular lender, such as a bank for a mortgage loan, it can take a minimum of thirty to sixty days for your acceptance to be completed and your funds to be distributed. So if you will be anticipating a fast closing, you have to understand that this could cost you a few weeks, causing you to miss out on the opportunity.
With banks introducing tougher loan criteria in the past few years, it's become harder for a self-employed person to find a mortgage loan, especially when his credit rating is not flawless. So do you have to stop trying and forego your ambition to get into real estate? Under no circumstances, especially when St Cloud hard money loans enable you to achieve great things in real estate.
A hard money home loan in St Cloud provides what is viewed as vital to most real estate deals — a quick closing of only a couple of weeks and at many times even less. Additionally, loan amounts can be made up to 70% loan-to-value of the "as is" property's valuation, as deemed by a professional appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as higher priced than bank lending products. But if you understand these loans are not long-term loans, the interest rate tends to be misleading. As it pertains to short-term loans of 1 or 2 years or less, you should think of them identical to any other expense for the project. Once you have resold the home and have made a positive gain, you're able to recover this expense from the property — just like recouping the money necessary for the brand-new kitchen appliances that you have put in.
Moreover, even someone with bad credit will be able to qualify for a hard money mortgage. St Cloud hard money lenders don't authorize a loan exclusively according to the person's credit score — rather they will analyze the home, its location and value, and the property's capability to pay back the financing independent of the person. Adding to that, if the applicant have proven experience in equivalent real estate endeavors, can put down cash for a down payment, and the value of equivalent houses in the area works to his benefit, he has got an excellent likelihood of qualifying for a hard money real estate loan.
So should you come across an outstanding and lucrative investment opportunity, be assured you will have a hard money lender in St Cloud, ready to lend you the capital you'll need. Fill out the contact form on this page or call us to discuss your project.
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