Suppose you've run into this truly good deal on a fix and flip property you found in a great location, and you're either a seasoned real estate investor or a first-timer who is looking to try his hand at flipping. Expert residential home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping program, are able to generate a gain of forty to fifty grand as an average on multiple occasions. And sure, they are helped in a big way via their professional experience, auction expertise and understanding of hard money loans. Nevertheless, you're certain that your impressive rehab and renovation talents will help you do a quality job on this property — additionally, you already have arranged to have one of the most sought after general contractors in town to take on the job.

But capital is often a separate problem entirely. If you approach a customary lender, much like a bank for a mortgage loan, it can take, at the very least, four to eight weeks for the approval to be completed and your funds to be dispersed. Considering that all the sellers are seeking a fast closing, that doesn't appear to be a good option to you in the slightest.

To add to it, banks have been tightening up their lending standards as of late, making it hard for someone to get a typical home loan if their credit rating is not flawless or he does not have a consistent salaried occupation. So does that leave you with no other option, but to abandon your ambition of venturing into the fix and flip business? Most certainly not, given that you always have the Rolling Meadows hard money loan option.

A hard money home loan in Rolling Meadows provides you with what is probably most crucial to real estate investors — a fast closing in as few as two weeks. Aside from that, financing can be done for up to 70% loan-to-value of the as-is house's valuation, as established by a licensed appraiser. A number of people believe hard money real estate loans to be more expensive than standard loans, because the lending rates for such loans often start out at 10%. But in reality, the rate of interest isn't as relevant for these loans, because they are not long-term loans. The price of such short-term loans ought to be viewed on par with every other expenditure that you will have to meet for the project. After you remodel and sell off the property, recuperating this expense is the same as recuperating the cost of the new kitchen appliances you placed into the property.

Additionally, it is simple to be eligible for a a hard money mortgage, even in the event your credit score is not that impressive. Rather than focusing exclusively on the borrower's credit score or net income, Rolling Meadows hard money lenders, who can be a privately owned company or an individual, say yes to a loan as a result of evaluating the property value, ease of marketability, its location, and the probability of recouping their money in the event of foreclosure. On top of that, if the person can demonstrate prior experience in similar real estate ventures, can put down cash for a down payment, and the price of comparative houses in the vicinity works to his benefit, he stands an excellent shot of being eligible to obtain a hard money real estate loan.

So should you come across a really good and worthwhile flipping opportunity, rest assured you will have a hard money lender in Rolling Meadows, willing to loan you the capital you may need. Enter your info into the form or give us a call to talk about your project.