Hard Money Loans in Calumet City
Suppose you've run into this truly good deal for a fix and flip property located in an ideal location, and you're either an experienced real estate investor or a first-timer who is looking to try out flipping houses. You've heard that professional property flippers, like the husband and wife on HGTV's Flip or Flop, turn an impressive average profit margin close to forty to fifty thousand dollars. Of course, you also realize that their successes are due to the simple fact that they are professionals, are proficient in hard money loans, they know the marketplace really well and furthermore, they know how to work a public auction for getting a reasonable deal. On the other hand, you are certain that your impressive rehab and renovation knowledge will assist you to do an outstanding job for this project — furthermore, you've already lined up one of the finest building contractors in the business to work on the job.
But how exactly can real estate investors get capital? In the event you get in touch with a common lending institution, much like a bank for funding, it very likely will take, at the very least, four to eight weeks for your approval to come through and your funds to be dispersed. Due to the fact all the sellers are looking for a fast closing, that does not seem like a wise idea to you whatsoever.
As well as this, for those who have an unfavorable credit score or don't receive a conventional income, it usually is more difficult to obtain bank financing, with the tighter loan criteria banks have put in place as of late. So does that leave you with no other option, but to abandon your aspiration to venture into home renovating? Never, because you can always go the Calumet City hard money loan route to pay for your home renovating project.
A hard money home loan in Calumet City gives you what's regarded as vital to many real estate deals — a fast closing of just a 2-3 weeks and at many times less. Further, loan amounts can be made up to 70% loan-to-value of the as-is property's valuation, as determined by a qualified appraiser. With the loan rates starting out near 10%, hard money real estate loans may look, at first glance, to be more expensive compared to traditional bank lending products. But the lengths of these loans are rather short, which makes the interest rate less important. Short-term loans of a couple months to a few years are best looked at as cost of capital, the same as every other expenditure in connection with a project. Right after you fix up and unload the house, recovering this expense is no different than recouping the money you spent for home appliances you put in the property.
Apart from this, hard money mortgages are not hard to qualify for, even when you posses bad credit. Calumet City hard money lenders do not authorize a loan exclusively based on the applicant's credit score — rather they will evaluate the property, where it is located and how much it is worth, and the property's ability to pay back the loan on its own. On top of that, if the borrower can demonstrate past experience in equivalent real estate endeavors, can place down money for the down payment, and the price of comparable homes in the area works to his benefit, he has got a very good likelihood of being eligible to get a hard money real estate loan.
So any time you run into a really good and lucrative investment opportunity, rest assured you will have a hard money lender in Calumet City, in a position to loan you the funds you'll need. Fill out the form on this page or call us to discuss the property or properties you have in mind.
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