Hard Money Loans in Chicago Heights
There is this outstanding opportunity to rehab and flip this wonderful out of date property in a fantastic area and it looks like the deal you have been wanting for a long time. You've probably heard that professional house flippers, such as the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit margin near forty to fifty thousand dollars. Undoubtedly, you also recognize that their success are credited to the simple fact that they are industry experts, are knowledgeable in hard money loans, they understand the marketplace really well and in addition, they are good at working a public auction for getting a good price. Still, your rehab and remodeling knowledge isn't that bad either — aside from that, you've already found a suitable general contractor to start the home.
But funding is often a separate problem altogether. Should you meet with a regular lender, much like a bank for funding, it in all likelihood will take no less than thirty to sixty days for the approval to come through and your funds to be sent out. Considering that all the sellers want a fast closing, that doesn't seem like a wise idea to you at all.
Furthermore, if you have an unfavorable credit score or do not have a conventional income, it can be tougher for you to qualify for bank financing, with the tighter loan guidelines banks have introduced lately. So will a shortage of financing stop you from sticking with your dream? Never, due to the fact you could always go the Chicago Heights hard money loan route to pay for your home flipping project.
A hard money home loan in Chicago Heights provides what's regarded as crucial to most real estate sales — a very fast closing of just a 2-3 weeks and more often than not less. What's more, the LTV value can reach up to 70% of the home's valuation, as estimated by a credentialed appraiser. With loan rates starting off near 10%, hard money real estate loans may look, initially, to be more expensive when compared with conventional bank lending products. But the time frames of these loans are comparatively shorter, which makes the interest rate less important. The price of such short-term loans should be looked at much like any other expense that you would have to meet for the project. And when you have turned the property or home, recouping this expense is the exact same as recuperating the expense for the bathroom or other upgrades you did.
Apart from this, hard money mortgages are not hard to qualify for, whether or not you have very bad credit. The borrower's credit score isn't the exclusive deciding factor for Chicago Heights hard money lenders — additionally, they examine the house, its market value, where it is located, and its ability to bring back their investment if things should not go as planned. How much an individual can put down beforehand for the house, how much experience he has in real estate investments, and price range of equivalent homes in the same vicinity are other factors that go into ascertaining a person's qualification for a hard money real estate loan.
So in case you have stumbled on an excellent fixer-upper with a significant potential for returns, you have also stumbled upon a hard money lender in Chicago Heights who is happy to provide financing for your fix and flip projects. Submit the contact form or give us a call to talk about the project you have in mind.
A loan specialist will be in touch shortly