Hard Money Loans in Chicago
Imagine you've encountered this excellent bargain for a fix and flip property located in an ideal location, and you happen to be either a seasoned real estate investor or a newbie who wants to try out flipping houses. Professional house flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping show, are able to generate a profit of forty to fifty grand for the majority of homes. Undoubtedly, you also understand that their success can be credited to the fact that they are professionals, are well versed in hard money loans, they understand the marketplace quite well and they also are good at working an auction to buy their homes at a good price. Having said that, you've also been cultivating your rehab and renovation skills, have a very good licensed contractor lined up and are confident that you can do a bang up job for this house.
But how do you find the needed capital for flipping? For those who approach a common lending institution, much like a bank for a mortgage loan, it very likely will take, at a minimum, 30-60 days for your approval to come through and your money to be accessible. Considering that all the sellers are looking for a fast closing, that does not appear to be a great idea to you at all.
Furthermore, for those who have a less-than-perfect credit score or do not receive a conventional income source, it may be more challenging to be eligible for bank financing, with the tighter loan requirements banks have introduced recently. So does this leave you with no other option, but to drop your dream to venture into flipping? Not at all, especially while Chicago hard money loans enable you to realize many amazing things in real estate.
When you get a hard money home loan in Chicago, you will get what is possibly most important to real estate transactions throughout the country — a very fast closing of roughly two weeks. What's more, the LTV value can go up to 70% of the place's valuation, as determined by a competent appraiser. Some people regard hard money real estate loans to be more pricey than regular loans, since the lending rates of such loans ordinarily start at 10%. But usually, the interest rate is not as useful a measure for these loans, because they will never be long-term financing. The price tag on such short-term loans ought to be viewed much like any other cost that you might encounter during the project. When you have resold the home and have made a positive gain, you can reclaim this expense from the property or home — much like recouping the money spent on the brand-new home appliances that you installed.
Besides, hard money mortgages are not difficult to qualify for, regardless if you have got poor credit. Chicago hard money lenders don't authorize a loan exclusively based on the applicant's credit score — rather they also assess the property, its valuation and location, and the property's ability to pay back the financing on its own. The amount that a person can put upfront towards the property or home, his past real estate experience, and selling price of equivalent properties in the neighborhood are various other factors that go into ascertaining an individual's suitability for a hard money real estate loan.
So should you run into a good and lucrative flipping opportunity, be assured you'll have a hard money lender in Chicago, in a position to lend you the money you need. Enter your info into the contact form or get in touch with us via phone and let's discuss your property or properties.
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