Hard Money Loans in Blue Island
There's this outstanding possibility for fixing and flipping this wonderful outdated condo in a good location and it looks like the deal you have been looking forward to for a long time. Professional home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of hauling in a profit of $40-$50k on a consistent basis. And without a doubt, they are aided in a big way due to their professional know-how, auction skills and knowledge of hard money loans. With that being said, you have recently been brushing up your rehab and renovation knowledge, have a licensed contractor lined up and are confident that you can do a great job for this home.
But financing is a separate question entirely. Should you go after a normal loan via a bank, you will end up waiting around approximately 1-2 months until the financing is approved and your funding is ready to go. So if you're looking for a fast closing, you need to recognize that this may set you back by weeks, making you lose out on the opportunity.
Moreover, for those who have a less-than-perfect credit situation or don't receive a regular source of income, it is usually tougher to be eligible for a bank loan, seeing the stricter loan guidelines banks have issued in recent times. So should you admit defeat and forego your aspiration to embark into fix and flips? By no means, because you can always go the Blue Island hard money loan route to finance your home flipping project.
A hard money home loan in Blue Island provides what's viewed as vital to many real estate transactions — a fast closing of only a few weeks and at many times less. Besides that, hard money lenders frequently agree to funding up to 70% LTV of the property or home value, as calculated by a licensed third-party evaluator. With lending rates starting around 10%, hard money real estate loans may appear, at first, to be higher in price compared to traditional bank financing. But usually, the lending rate is not as useful a measure for these loans, given that they aren't long-term financing. Short-term loans of a couple of months to a few years are best thought of in terms of cost of capital, very much like every other expenditure related to a project. And once you have flipped the house, recovering this expense is comparable to recovering the expense for all the kitchen and bath updates you did.
Apart from this, hard money mortgages are not hard to qualify for, regardless if you posses a low credit score. Blue Island hard money lenders do not approve a loan strictly judging by the borrower's credit score — rather they also look at the home, where it is located and what it is worth, and the property's capability to pay back the financing by itself. The total amount that a borrower can put down in advance for the house, his past real estate experience, and price range of equivalent properties in the vicinity are other factors that go into establishing a borrower's eligibility for a hard money real estate loan.
So any time you come across a good and worthwhile investment opportunity, be assured you'll have a hard money lender in Blue Island, willing to lend you the cash you'll need. Fill out the contact form or call us and let's talk about the property you have in mind.
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