Hard Money Loans in Crown Point
Imagine you've stumbled upon this excellent deal for a fix and flip property in a great location, and you happen to be either an experienced real estate investor or a first-timer who hopes to try his hand at flipping. Expert home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a profit of $40-$50k on a consistent basis. It's fair to say their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction skills have played a significant role in their results. On the other hand, you are assured that your superb rehab and remodeling abilities can help you do a great job on the property — additionally, you already have lined up one of the best building contractors in the area to take on the project.
But where can you obtain the needed financing for flipping? For those who meet with a customary lending institution, like a bank for financing, it's very likely going to take no less than 4-8 weeks for the approval to be completed and the money to be accessible. Considering that the sellers want a fast closing, that doesn't appear to be a good option to you whatsoever.
Furthermore, if you have a less-than-perfect credit situation or do not have a routine source of income, it can be tougher to be eligible for a bank loan, with the more stringent loan criteria banks have introduced of late. So does that mean you are without an option, but to drop your dream of venturing into flipping? By no means, especially when Crown Point hard money loans enable you to accomplish many amazing things in real estate.
When you apply for a hard money home loan in Crown Point, you'll get what's perhaps most essential to real estate purchases across the country — a fast closing of around two weeks. Besides that, hard money lenders are capable of doing loans up to 70% LTV of the home's valuation, as estimated by a qualified third-party evaluation. With the loan rates starting out at about 10%, hard money real estate loans may look, at first glance, to be more costly compared to conventional bank financing. But in reality, the interest rate isn't as pertinent for these loans, since they are not long-term financing. Short-term loans of a couple of months to a few years are best understood as cost of capital, the same as any other financial outlay in connection with a project. And when you have finally turned the property or home, recuperating this expense is identical to recovering the expense for all the bathroom upgrades you performed.
Moreover, even an individual with weak credit can easily be eligible for a hard money mortgage. Instead of focusing strictly on the borrower's credit score or source of income, Crown Point hard money lenders, who could be a privately owned company or an individual, approve a loan as a result of evaluating the property value, its marketability, its location, and the possibility of recouping their capital in case of foreclosure. The total amount that a borrower can put down in advance towards the home, how much practical experience he has in real estate investing, and price range of comparative properties in the same area are additional factors that go into determining an individual's eligibility for a hard money real estate loan.
So if you have stumbled upon a wonderful fixer-upper with a huge potential for returns, you have also found yourself a hard money lender in Crown Point who's happy to finance your flipping venture. Submit the contact form or call us to talk about the property or properties you have in mind.
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