Hard Money Loans in Crest Hill
Suppose you've run across this excellent bargain on a fix and flip property you found in an ideal neighborhood, and you happen to be either a seasoned real estate investor or a first-timer who is looking to try his hand at flipping. Everybody knows that expert professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality flipping show, Fix or Flop, can readily make a typical profit of forty to fifty thousand dollars on their flips. And without a doubt, they are aided in a major way by their professional know-how, auction expertise and understanding of hard money loans. Still, your rehab and remodeling skills aren't that bad either — besides, you have already located an ideal general contractor to start this job.
But funding is a different problem altogether. A typical lending institution, like for example a bank, takes a minimum of 1-2 months to authorize the mortgage and provide the money. So if you're anticipating a fast closing, it's important to understand that this may cost you a few weeks, making you miss out on the sale.
With banks establishing harder loan standards in recent times, it has become more difficult for a self-employed individual to obtain a mortgage loan, especially when his credit score is not optimal. So does that leave you with no other option, but to give up your ambition of getting into rehabbing? Most certainly not, because you always have the Crest Hill hard money loan alternative.
A hard money home loan in Crest Hill provides what's probably most sought after by real estate investors — a quick closing in as few as a few weeks. Besides that, hard money lenders can do loans up to 70% LTV of the property's valuation, as determined by a credentialed third-party evaluation. Some people consider hard money real estate loans to be higher in price than ordinary loans, considering lending rates of such loans generally start at 10%. But the time frames of these loans tend to be fairly short, which means the interest rate is far less significant. The price tag on such short-term loans should be looked at much like every other financial outlay that you would need to meet for the project. Right after you renovate and sell off the property, recovering this expense is no different than recuperating the expense for stainless steel appliances you put in the home.
Furthermore, even a person with bad credit can easily be eligible for a hard money mortgage. The applicant's credit score will not be the single determining factor for Crest Hill hard money lenders — they also look at the house, what is it valued at, its location, and its capability to earn back their financial commitment if everything does not work out as planned. Additional variables that impact a person's approval for a hard money real estate loan include how much he can put into a down payment, his former experience as a real estate investor, and selling price of comparative, recently sold residences nearby.
So in the event you come across a very good and worthwhile flipping opportunity, feel comfortable knowing you'll have a hard money lender in Crest Hill, equipped to loan you the funds you'll need. Fill out the contact form or call us and let's discuss your project.
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