Hard Money Loans in Crystal Lake
You discovered this outstanding possibility for renovating and flipping this wonderful outdated property in a good location and it seems like the deal you've been wanting for a long time. Everyone knows that skilled professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, can readily make a typical profit of $40,000 to $50,000 on their home projects. And sure, they are aided in a big way by their professional experience, auction expertise and familiarity with hard money loans. With that being said, you've recently been developing your rehab and remodeling knowledge, have a contractor ready to go and are certain that you will be able to do an impressive job on this property.
But money is usually a separate problem entirely. For those who get in touch with a customary lending institution, like a bank for funding, it's likely going to take, as a minimum, thirty to sixty days for the approval to come through and your money to be accessible. With the home owners wanting a fast closing, that does not appear to be a good idea to you whatsoever.
With banks establishing harder loan requirements in the recent past, it is harder for a self-employed person to obtain a home loan, especially if his credit circumstances are not flawless. So does that mean you are without an option, but to abandon your ambition of venturing into rehabbing? Absolutely not, given that you always have the Crystal Lake hard money loan option.
A hard money home loan in Crystal Lake can provide what's considered vital to many real estate sales — a very fast closing of only a couple of weeks and oftentimes even less. Besides that, hard money lenders can approve funding up to 70% LTV of the property or home's valuation, as calculated by a certified third-party appraiser. A number of people regard hard money real estate loans to be more expensive than standard loans, considering lending rates for such loans typically start out at 10%. But when you appreciate that these loans are not long-term home loans, the rate of interest may be misleading. Short-term loans of a couple of months to a few years are best looked at in terms of cost of capital, the same as every other expense involved with a project. And once you've sold the property or home, recovering this expense is the exact same as recuperating the expense for all the bathroom upgrades you performed.
Besides, hard money mortgages are not difficult to qualify for, whether or not you have got less-than-perfect credit. Crystal Lake hard money lenders do not authorize a loan solely based on the borrower's credit score — instead they will evaluate the home, its location and value, and the home's capability to pay back the loan on its own. Other variables that have an impact on an applicant's eligibility for a hard money real estate loan include how much he is able to put towards a down payment, his past experience as a real estate investor, and selling price of comparable, fairly recently sold homes in the area.
So if you have found a really good fixer-upper with a high chance of returns, you've also discovered a hard money lender in Crystal Lake who's prepared to provide financing for your fix and flip venture. Submit the contact form on this page or give us a call and let's talk about the project you have in mind.
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