Hard Money Loans in Chicago Ridge
Suppose you've run into this truly good deal on a fix and flip property in a terrific neighborhood, and you're either a skilled real estate investor or a first-timer who is looking to try his hand at flipping. Professional residential home flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a gain of $40-$50k for the majority of homes. And yes, they are helped in a big way due to their professional know-how, auction skills and understanding of hard money loans. On the other hand, you're convinced that your superb rehab and renovation abilities can help you do a great job on this property — furthermore, you already have lined up one of the best building contractors in the area to take on the project.
But how can real estate investors obtain financing? When you go after a traditional loan via a bank, you will wind up waiting around approximately one to two months up until the money is approved and the money is accessible. Given that home owners wish to have a fast closing, it may be best to begin looking for additional financing alternatives.
To add to it, banks have been tightening up their lending standards in recent years, which makes it hard for people to receive a typical loan if their credit score is not perfect or he is lacking a consistent salaried job. So will a shortage of financing prevent you from sticking with your ambitions? Under no circumstances, especially when Chicago Ridge hard money loans enable you to accomplish many amazing things in real estate.
If you decide to apply for a hard money home loan in Chicago Ridge, you will get what is probably most vital to real estate purchases throughout the country — a fast closing of roughly two weeks. Plus, the LTV value can go up to 70% of the home's valuation, as estimated by a competent appraiser. With the interest rates starting off at about 10%, hard money real estate loans might appear, at first, to be more pricey as compared with traditional bank lending products. But the time frames of these loans tend to be relatively shorter, which makes the interest rate much less significant. The cost of such short-term loans should be considered much like every other expenditure that you might encounter during the project. After you renovate and sell off the home, recovering this expense is just like recuperating the expense for new kitchen appliances you installed in the place.
Besides, hard money mortgages are not difficult to qualify for, even when you posses very bad credit. The applicant's credit score will not be the lone deciding factor for Chicago Ridge hard money lenders — they also examine the home, its market value, where it is located, and its ability to bring back their investment if things do not go as planned. How much money a person can put down beforehand for the house, how much experience he has in real estate investing, and selling price of comparative properties in the area are other factors that go into ascertaining a borrower's eligibility for a hard money real estate loan.
If you happen to have stumbled upon a really great fixer-upper with a huge potential for returns, you've also stumbled upon a hard money lender in Chicago Ridge that is happy to provide financing for your rehab project. Fill out the contact form on this page or give us a call and let's talk about the property or properties you have in mind.
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