Hard Money Loans in Bloomington

Suppose you've run into this truly good deal for a fix and flip property in an ideal location, and you are either a seasoned real estate investor or a first-timer who wants to try out flipping houses. You may have heard that competent house flippers, similar to the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit margin near $40,000 – $50,000. It's fair to say their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction talents have had a significant role in their success. On the other hand, you're convinced that your impressive rehab and remodeling skills will assist you to do a quality job on the house — additionally, you already have lined up one of the most sought after contractors in the business to take care of this job.

But where do you obtain the necessary funding for home flipping? For those who approach a regular lending institution, like a bank for funding, it's very likely going to take a minimum of thirty to sixty days for the approval to be completed and your money to be sent out. Since the majority of sellers would rather have a fast closing, you may want to start searching for additional financing options.

As well as this, for those who have a less-than-perfect credit rating or don't receive a consistent source of income, it usually is more difficult to be eligible for a a bank loan, seeing the tighter loan requirements banks have issued recently. So should you stop trying and forego your desire to venture into the real estate market? Not at all, especially while Bloomington hard money loans can help you achieve many amazing things in real estate.

A hard money home loan in Bloomington gives you what is viewed as vital to most real estate sales — a quick closing of just a few weeks and at many times less. Besides that, hard money lenders can do funding up to 70% LTV of the property value, as identified by a credentialed third-party evaluator. With the rates starting out at about 10%, hard money real estate loans might appear, at first glance, to be higher priced in comparison with traditional bank lending products. But once you consider these are not long-term loans, the rate may be misleading. Short-term loans of a couple months to a few years are best looked at in terms of cost of capital, much like any other expense in connection with a project. Once you've sold the home and have made a successful financial gain, you're able to reclaim this expense from the property or home — just like recuperating the cost of brand-new appliances for the kitchen that you've installed.

Furthermore, even an individual with low credit will be able to qualify for a hard money mortgage. Instead of focusing strictly on the applicant's credit score or wages, Bloomington hard money lenders, who can be a privately owned company or an individual, approve a loan as a result of examining the home value, how easy it will be to market, its location, and the likelihood of recuperating their money in case of foreclosure. Several other criteria that influence a borrower's acceptance for a hard money real estate loan can include how much he can put into a down payment, his prior experience being a real estate investor, and price of similar, just recently sold residences in the neighborhood.

If you happen to have stumbled on a really good fixer-upper with a significant potential for returns, you've also found yourself a hard money lender in Bloomington that's ready to finance your fix and flip projects. Fill out the form on this page or give us a call to discuss the property or properties you have in mind.

Request More Information

A loan specialist will be in touch shortly

Personal Info

Project Info

Investment property loans only please, no primary residences at this time.