Hard Money Loans in Cicero
There's this amazing possibility for renovating and flipping this wonderful old house in a good part of town and it looks like the one you've been expecting for quite some time. You've probably heard that competent house flippers, much like the couple on HGTV's Flip or Flop, turn an impressive average profit near $40,000 – $50,000. It goes without saying their past experiences rehabbing, knowledge of hard money loans, familiarity with the housing market, and auction talents have played a big part in their success. Nonetheless, your rehab and renovation skills aren't bad either — aside from that, you have already located the right licensed contractor to take on this project.
But financing is often a different issue entirely. A traditional lender, say for example a bank, takes at least one to two months to authorize the loan and provide the cash. Since the majority of sellers would prefer a fast closing, you may want to start seeking out other funding alternatives.
Moreover, if you have an unfavorable credit score or don't have a regular source of income, it is usually more difficult for you to be eligible for a bank financing, with the tougher loan criteria banks have issued in recent times. So will a shortage of funding keep you from pursuing your dream? Not at all, particularly when Cicero hard money loans will assist you to accomplish great things in the real estate market.
A hard money home loan in Cicero provides what's deemed imperative to many real estate transactions — a quick closing of just a 2-3 weeks and oftentimes less. And additionally, loans can be done for up to 70% loan-to-value of the as-is valuation, as calculated by a qualified appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank loans. But the time frames of these loans tend to be much shorter, which means the rate is far less significant. Short-term loans of a couple of months to a handful of years are best understood as cost of capital, much like all other expenditures involved with a project. After you fix up and sell the home, recouping this expense is no different than recovering the cost of the new kitchen appliances you installed in the property.
Additionally, it's simple to be eligible for a a hard money mortgage, even in the event your credit situation is not that great. The borrower's credit score will not be the exclusive deciding factor for Cicero hard money lenders — they also look at the home, its market value, where it is located, and its potential to return their financial commitment if things should not go as planned. Adding to that, if the individual have proven experience in similar real estate endeavors, can place down money towards the down payment, and the value of comparable properties in the vicinity works to his benefit, he has got a good likelihood of being approved to get a hard money real estate loan.
So if you have stumbled upon an excellent home to flip with a significant chance of returns, you have also discovered a hard money lender in Cicero who is ready to fund your fix and flip ventures. Complete the form or give us a call and let's talk about your project.
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