Hard Money Loans in Des Plaines
Imagine you've stumbled upon this truly good deal for a fix and flip property in a terrific neighborhood, and you happen to be either an experienced real estate investor or a newbie who really wants to try his hand at flipping. You've probably heard that professional house flippers, like the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit margin close to forty to fifty thousand dollars. And indeed, they are helped in a big way via their professional knowledge, auction skills and familiarity with hard money loans. Still, your rehab and remodeling skills aren't bad either — aside from that, you've already located a suitable general contractor to tackle the home.
But capital is a separate question entirely. A standard lending institution, like for example a bank, takes no less than one to two months to approve the loan and provide the capital. With all the sellers looking for a fast closing, that doesn't appear to be a wise idea to you in the slightest.
Furthermore, if you have a sub-optimal credit score or don't receive a regular source of income, it can be more difficult for you to qualify for a bank loan, with the tighter loan requirements banks have put in place in recent times. So must you stop trying and abandon your ambition to venture into fix and flips? Absolutely not, seeing as you always have the Des Plaines hard money loan option.
A hard money home loan in Des Plaines provides what is possibly most important to real estate investors — a fast closing in as few as 14 days. Further, loans can be made up to 70% loan-to-value of the "as is" property value, as calculated by a qualified appraiser. Some individuals regard hard money real estate loans to be more expensive than regular financing, considering interest rates of such loans generally start out at 10%. But usually, the interest rate is not as useful a measure for these loans, given that they are not long-term loans. The price tag on such short-term loans ought to be considered on par with every other cost that you would encounter in the course of the project. Right after you renovate and resell the property, recovering this expense is just like recouping the expense for home appliances you installed in the property.
Moreover, even individuals with low credit can easily be eligible for a hard money mortgage. Instead of focusing primarily on the borrower's credit score or net income, Des Plaines hard money lenders, who can be a privately owned company or an individual, authorize a loan as a result of assessing the home value, ease of marketability, where it is located, and the likelihood of recovering their capital in the event of foreclosure. On top of that, if the person can demonstrate past experience in comparable real estate endeavors, can place down cash towards a down payment, and the price of equivalent homes in the neighborhood works to his benefit, he stands an excellent chance of qualifying to get a hard money real estate loan.
So in case you have stumbled upon a wonderful fixer-upper with a high probability of returns, you have also found yourself a hard money lender in Des Plaines that is ready to provide funding for your flipping ventures. Submit the form on this page or get in touch with us via phone to talk about the property or properties you have in mind.
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