Hard Money Loans in Clarendon Hills
You discovered this outstanding opportunity to renovate and flip this nice old property in a very good part of town and it seems a lot like the one you have been eagerly waiting on for quite some time. You may have heard that professional house flippers, much like the couple on HGTV's Flip or Flop, enjoy an impressive average profit of around forty to fifty thousand dollars. Naturally, you also know that their great results are attributed to the simple fact that they are experts, are well versed in hard money loans, they know market trends really well and in addition, they know how to work an auction to purchase their properties at a good deal. Nevertheless, you're convinced that your impressive rehab and remodeling abilities can help you do an outstanding job on the home — additionally, you already have arranged to have one of the best contractors in the business to take on this job.
But where can you obtain the necessary financing for flipping? In the event you apply for a regular loan via a bank, you will end up waiting roughly 1-2 months up until the financing is approved and the funding is ready to go. With the sellers looking for a fast closing, that doesn't appear to be a good idea to you in the slightest.
With banks adding more challenging loan guidelines in the past few years, it is much harder for a self-employed individual to get a home loan, especially if his credit circumstances are not optimal. So does this mean you have no option, but to abandon your dream of getting into rehabbing? By no means, considering that you could always go the Clarendon Hills hard money loan route to pay for your rehab project.
If you should get a hard money home loan in Clarendon Hills, you will get what is possibly most vital to real estate transactions throughout the country — a very fast closing of about two weeks. And additionally, loans can be done for up to 70% loan-to-value of the as-is home value, as deemed by a professional appraiser. At first, hard money real estate loans, with starting interest rates of 10%, appear to be more pricey than bank loans. But when you appreciate that these loans are not long-term mortgage loans, the interest rate can be misleading. Short-term loans of a couple months to a few years are best understood as cost of capital, very much like every other expense involved with a project. After you remodel and sell off the house, recuperating this expense is the same as recovering the one for new kitchen appliances you installed in the property.
Furthermore, even an individual with bad credit will be able to be eligible for a hard money mortgage. The person's credit score will not be the sole determining factor for Clarendon Hills hard money lenders — they also consider the property, its market valuation, where it is located, and its capability to earn back their financial commitment if things do not work out as planned. The amount that an individual can put upfront towards the house, his real estate experience, and selling price of comparable properties in the vicinity are other details that go into ascertaining an applicant's qualification for a hard money real estate loan.
Locating a hard money lender in Clarendon Hills to help with expenses for your fix and flip endeavor is not very hard, as long as the opportunity that lies before you is promising and possesses the right prospect for returns. Complete the contact form on this page or get in touch with us via phone to discuss the property you have in mind.
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