Hard Money Loans in Buffalo Grove
Imagine you've encountered this really great deal on a fix and flip property you found in a great neighborhood, and you are either an experienced real estate investor or a first-timer who is looking to try his hand at flipping. You've heard that professional property flippers, similar to the married couple on HGTV's Flip or Flop, have an impressive average return near forty to fifty thousand dollars. And indeed, they are aided in a major way due to their professional know-how, auction expertise and knowledge of hard money loans. However, you are convinced that your impressive rehab and renovation skills will enable you to do a great job on this project — furthermore, you have already lined up one of the premier general contractors in the area to take care of the project.
But funding is often a separate issue entirely. If you meet with a regular lending institution, much like a bank for a loan, it very likely will take no less than 30-60 days for the approval to be completed and the money to be dispersed. Thus if you are anticipating a fast closing, it is important you realize that this could set you back by a few weeks, causing you to lose out on the house.
With banks bringing in tougher loan standards in the past several years, it is now tougher for a self-employed individual to find a home loan, especially when his credit score is not perfect. So will a lack of financing stop you from sticking to your dream? Under no circumstances, especially when Buffalo Grove hard money loans can help you accomplish great things in real estate.
A hard money home loan in Buffalo Grove offers you what is deemed crucial to most real estate deals — a very fast closing of only a 2-3 weeks and oftentimes less. In addition, the LTV value can range up to 70% of the property value, as estimated by a competent appraiser. A number of people regard hard money real estate loans to be higher in price than customary loans, since the lending rates of such loans normally start at 10%. But the lengths of these loans are comparatively short, making the rate far less important. Short-term loans of several months to a few years are best understood in terms of cost of capital, the same as every other expenditure involved with a project. Right after you remodel and sell off the home, recovering this expense is no different than recuperating the one for stainless steel appliances you placed into the house.
What's more, it's easy to be eligible for a hard money mortgage, regardless if your credit situation is not that superb. Buffalo Grove hard money lenders don't approve a loan strictly based on the borrower's credit score — rather they will examine the home, its value and location, and the property's capacity to pay back the loan on its own. The total amount that an individual can put upfront towards the home, his past real estate experience, and price range of equivalent homes in the same area are various other factors that go into determining an individual's eligibility for a hard money real estate loan.
So in case you have stumbled on a really good home to flip with a huge potential for returns, you have also stumbled upon a hard money lender in Buffalo Grove that's ready to finance your flipping ventures. Fill out the contact form or give us a call and let's discuss your property or properties.
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