Hard Money Loans in Arlington Heights
Suppose that you've run across this excellent deal for a fix and flip property you found in an ideal location, and you are either a skilled real estate investor or a first-timer who hopes to try his hand at flipping. Professional home flippers, much like the young couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a profit of $40-$50k for most homes. It's fair to say their rehabbing experience, knowledge of hard money loans, familiarity with the market, and auction skills have played a significant role in their success. Still, your rehab and remodeling skills aren't bad either — in any case, you have already located a suitable contractor to take on the home.
But where do real estate investors get money? Should you meet with a common lending institution, like a bank for financing, it's likely going to take, at a minimum, four to eight weeks for the acceptance to come through and the money to be sent out. Due to the fact all the home owners are looking for a fast closing, that does not appear like a good idea to you at all.
With banks establishing tougher loan criteria in the last few years, it has become much harder for a self-employed individual to find a home loan, especially when his credit rating is not flawless. So will inadequate funds keep you from sticking with your dream? By no means, due to the fact you could always go the Arlington Heights hard money loan route to finance your home flipping project.
A hard money home loan in Arlington Heights offers you what is regarded as essential to many real estate deals — a quick closing of just a couple of weeks and sometimes even less. Besides that, hard money lenders frequently agree to lending up to 70% LTV of the property or home's valuation, as assessed by a certified third-party appraiser. With lending rates starting out near 10%, hard money real estate loans may seem, initially, to be more costly as compared with conventional bank loans. But in reality, the lending rate isn't as relevant for these loans, simply because they are not long-term loans. The cost of such short-term loans should be viewed on par with any other expenditure that you would need to meet pertaining to the project. And once you have sold the property or home, recuperating this expense is the exact same as recouping the expense for the bathroom or other improvements you performed.
Furthermore, even a person with poor credit can easily qualify for a hard money mortgage. As an alternative for focusing only on the applicant's credit score or source of income, Arlington Heights hard money lenders, who may be a private company or an individual person, authorize a loan after evaluating the home value, ease of marketability, its location, and the odds of recovering their money in the event of foreclosure. Other criteria that affect a person's eligibility for a hard money real estate loan include the amount he can put into a down payment, his prior experience being a real estate investor, and price of similar, just recently sold homes nearby.
So should you come across an outstanding and profitable investment opportunity, rest assured you will have a hard money lender in Arlington Heights, willing to loan you the funds you will need. Complete the form on this page or give us a call and let's discuss the project you have in mind.
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