Suppose that you've run across this really great bargain on a fix and flip property in a great neighborhood, and you're either a seasoned real estate investor or a first-timer who really wants to try his hand at flipping. You may have heard that professional home flippers, much like the couple on HGTV's Flip or Flop, enjoy an impressive average return close to forty to fifty thousand dollars. And sure, they are aided in a big way due to their professional knowledge, auction expertise and understanding of hard money loans. On the other hand, you are certain that your impressive rehab and renovation knowledge will assist you to do a great job on the house — furthermore, you've already lined up one of the best building contractors in the business to take on the job.

But where do you get the needed financing for home flipping? A standard lending institution, say for example a bank, takes a minimum of 1-2 months to consent to the loan and provide the monies. Since most home owners prefer a fast closing, you may want to start looking for other funding alternatives.

With banks establishing tougher loan criteria in the last few years, it is more challenging for a self-employed individual to obtain a mortgage loan, especially if his credit score is not flawless. So must you admit defeat and forego your ambition to venture off into the real estate market? Certainly not, because you also have the South Barrington hard money loan option.

If you get a hard money home loan in South Barrington, you'll get what is possibly most important to real estate purchases across the country — a quick closing of about fourteen days. Besides that, hard money lenders frequently agree to funding up to 70% LTV of the property value, as calculated by a qualified third-party appraiser. Some people consider hard money real estate loans to be more pricey than customary financing, because the interest rates for these loans ordinarily start off at 10%. But in reality, the rate of interest is not as relevant for these loans, since they will never be long-term financing. Short-term loans of a couple of months to a handful of years are best understood as cost of capital, much like any other expenditure related to a project. And when you have turned the property, recuperating this expense is comparable to recuperating the expense for all the bathroom upgrades you performed.

Besides, hard money mortgages are easy qualifying, even if you have got a weak credit score. The applicant's credit score isn't the primary deciding factor for South Barrington hard money lenders — they also look at the home, how much it is worth, where it is located, and its capability to bring back their financial commitment if things do not work out as intended. Adding to this, if the borrower have proven experience in similar real estate ventures, can place down cash towards the down payment, and the cost of similar properties in the area works to his benefit, he will have a very good shot of qualifying to obtain a hard money real estate loan.

Finding a hard money lender in South Barrington to finance your flipping business is not very challenging, as long as the opportunity in front of you is promising and has a strong potential for returns. Submit the contact form or get in touch with us via phone and let's discuss your property or properties.