Hard Money Loans in Bunker Hill Village
Suppose that you've run across this really great deal on a fix and flip property located in a terrific location, and you are either a skilled real estate investor or a first-timer who hopes to try his hand at flipping. Professional property flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are capable of generating a gain of forty to fifty grand on average. Without question, their past experiences rehabbing, knowledge of hard money loans, expertise in their market, and auction talents have been large factors to their successes. That said, you have also been brushing up your rehab and renovation knowledge, have a very good general contractor arranged and are certain that you can do an impressive job for this property.
But capital is a separate issue altogether. When you meet with a standard lending institution, such as a bank for a mortgage loan, it can take, at the very least, four to eight weeks for your acceptance to be completed and your money to be sent out. Given that home owners favor a fast closing, you might want to begin searching for additional financing options.
Furthermore, if you have a less-than-perfect credit rating or don't have a consistent source of income, it is normally tougher for you to obtain bank financing, considering the stricter loan guidelines banks have put in place lately. So does this mean you have no option, but to abandon your aspiration of venturing into flipping? Certainly not, given that you also have the Bunker Hill Village hard money loan option.
A hard money home loan in Bunker Hill Village can provide what's viewed as crucial to many real estate transactions — a fast closing of just a few weeks and at many times even less. Besides that, hard money lenders are capable of doing funding up to 70% LTV of the home's valuation, as identified by a credentialed third-party appraiser. At first, hard money real estate loans, with starting interest rates of 10%, could be seen as more expensive than bank financing. But the term lengths for these loans are relatively shorter, which means the rate is far less important. The price of such short-term loans ought to be looked at much like every other financial outlay that you would encounter in the course of the project. And as soon as you've finally flipped the property, recuperating this expense is comparable to recouping the expense for the bathroom or other updates you performed.
In addition, even a person with low credit can easily be eligible for a hard money mortgage. The customer's credit score will not be the single determining factor for Bunker Hill Village hard money lenders — they also consider the piece of real estate, its market valuation, its location, and its capacity to earn back their financial commitment if things should not work out as intended. Additional factors that influence a customer's acceptance for a hard money real estate loan can include what amount of money he is in a position to put towards a down payment, his former experience being a real estate investor, and selling price of comparable, recently sold properties in the vicinity.
So in case you have found a really good fixer-upper with a significant probability of returns, you have also stumbled upon a hard money lender in Bunker Hill Village who's willing to fund your fix and flip project. Complete the form or give us a call to talk about the property or properties you have in mind.
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