Hard Money Loans in Bolingbrook
Suppose you've run across this really great bargain for a fix and flip property you found in an ideal location, and you happen to be either an experienced real estate investor or a first-timer who hopes to try his hand at flipping. Professional house flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are able to earn a gain of $40-$50k on a consistent basis. And yes, they are helped in a major way as a result of their professional know-how, auction skills and familiarity with hard money loans. On the other hand, you are convinced that your impressive rehab and renovation knowledge will help you do a quality job on the property — additionally, you already have arranged to have one of the finest contractors in town to take care of this project.
But how exactly can real estate investors obtain funds? A typical lender, say for example a bank, takes no less than one to two months to approve the loan and release the monies. Due to the fact the sellers are looking for a fast closing, that doesn't seem like a good option to you at all.
With banks bringing in harder loan standards in recent years, it is harder for a self-employed individual to get a mortgage loan, especially when his credit circumstances are not flawless. So does that mean you are without an option, but to drop your dream of getting into home renovating? By no means, considering that you can always use the Bolingbrook hard money loan approach to finance your flipping project.
A hard money home loan in Bolingbrook provides what's perhaps most crucial to real estate investors — a quick closing time period of as little as 2 weeks. What's more, the LTV value can range up to 70% of the property's valuation, as determined by a certified appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as higher in price than bank loans. But if you consider these loans are not long-term mortgage loans, the rate of interest tends to be misleading. Short-term loans of a couple of months to a handful of years are best approached in terms of cost of capital, similar to every other financial outlay associated with a project. After you renovate and sell the home, recuperating this expense is no different than recovering the expense for stainless steel appliances you installed in the home.
Moreover, even someone with weak credit will be able to qualify for a hard money mortgage. The person's credit score will not be the single determining factor for Bolingbrook hard money lenders — additionally, they look at the piece of real estate, what is it valued at, its location, and its potential to bring back their financial commitment if things do not go as intended. Additional criteria that impact an individual's acceptance for a hard money real estate loan include how much he is in a position to put into a down payment, his previous experience as a real estate investor, and selling price of comparable, just recently sold homes nearby.
So in the event you come across an outstanding and profitable flipping opportunity, rest assured you will have a hard money lender in Bolingbrook, ready to lend you the capital you'll need. Complete the contact form or call us and let's talk about your property or properties.
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