Hard Money Loans in Calumet Park
Imagine you've stumbled upon this excellent deal for a fix and flip property in an ideal neighborhood, and you're either an experienced real estate investor or a first-timer who wants 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 able to haul in a profit of forty to fifty grand on average. Without question, their rehabbing experience, knowledge of hard money loans, expertise in their housing market, and auction skills have had a big role in their successes. With that being said, you have likewise been cultivating your rehab and remodeling skills, have a very good contractor ready for the project and are confident that you will be able to do a bang up job for this home.
But money is a separate issue entirely. A conventional lending institution, for instance a bank, takes at a minimum one to two months to authorize the financing and provide the money. Because most sellers would prefer a fast closing, you may have to start seeking out other funding alternatives.
With banks adding harder loan requirements in recent times, it's become more challenging for a self-employed individual to obtain a home loan, especially when his credit score is not optimal. So must you admit defeat and forego your ambition to venture off into the real estate market? By no means, considering that you can always use the Calumet Park hard money loan approach to finance your rehab project.
A hard money home loan in Calumet Park offers you what's deemed imperative to most real estate deals — a quick closing of just a few weeks and at many times even less. And additionally, financing can be made up to 70% loan-to-value of the "as is" home's valuation, as calculated by a professional appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as costlier than bank financing. But once you consider these loans are not long-term mortgage loans, the interest rate may be misleading. As it pertains to short-term loans of several years or even less, you should think of them much like you would other expenditures for your project. And as soon as you have sold the property, recovering this expense is identical to recouping the expense for all the kitchen and bath updates you performed.
Besides, hard money mortgages are not difficult to qualify for, whether or not you have got bad credit. Calumet Park hard money lenders do not approve a loan strictly judging by the borrower's credit score — instead they additionally examine the property or home, its valuation and location, and the property's capability to pay back the loan on its own. On top of that, if the person can demonstrate past experience in similar real estate ventures, can put down money towards a down payment, and the price of equivalent properties in the neighborhood works to his benefit, he will have a really good shot of being approved to obtain a hard money real estate loan.
So in the event you run into a really good and profitable flipping opportunity, be assured you'll have a hard money lender in Calumet Park, willing to loan you the funds you need. Enter your info into the form on this page or get in touch with us via phone to discuss the property you have in mind.
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