Hard Money Loans in Burr Ridge
An outstanding bargain on a fix and flip property located in an excellent area of the city shows up out of the blue — sounds too good to be true. Everybody knows that expert professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping show, Fix or Flop, can generate a typical profit of $40,000 to $50,000 on their flips. Without question, their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction skills have had an important part in their results. Having said that, you have likewise been cultivating your rehab and renovation skills, have a building contractor lined up and are positive that you can do an impressive job for this house.
But where can real estate investors obtain funding? A typical lending institution, say for example a bank, takes at least 1 to 2 months to authorize the mortgage and provide the monies. Since the majority of home owners would prefer a fast closing, you might want to start looking for additional funding options.
Moreover, if you have a less-than-perfect credit rating or don't have a consistent income, it usually is more difficult for you to be eligible for a bank loan, with the stricter loan criteria banks have introduced in recent times. So should you stop trying and forego your desire to embark into real estate? Definitely not, seeing as you also have the Burr Ridge hard money loan option.
If you should put in an application for a hard money home loan in Burr Ridge, you'll get what's possibly most important to real estate negotiations throughout the country — a quick closing of around 2 weeks. In addition, the LTV value can reach 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%, seem to be more costly than bank financing. But in reality, the interest rate is not as useful a measure for these loans, since they will never be long-term loans. The price of such short-term loans should be evaluated on par with every other cost that you would encounter in the course of the project. And when you have finally flipped the property or home, recouping this expense is comparable to recuperating the expense for the kitchen and bath improvements you performed.
Moreover, even a person with weak credit can still qualify for a hard money mortgage. Rather than focusing solely on the borrower's credit score or income, Burr Ridge hard money lenders, who may be a private company or an individual person, say yes to a loan after examining the home value, its salability, its location, and the likelihood of getting back their money if they have to foreclose the loan. How much money a borrower can put upfront towards the house, his real estate experience, and selling price of comparative homes in the same vicinity are additional details that go into determining a person's qualification for a hard money real estate loan.
Finding a hard money lender in Burr Ridge to finance your renovation project is not very challenging, as long as the opportunity that lies ahead of you is promising and has a strong potential for returns. Complete the form or get in touch with us via phone and let's talk about your project.
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