Hard Money Loans in Dolton
Imagine you've encountered this truly good deal on a fix and flip property in a terrific location, and you're either a skilled real estate investor or a newbie who is looking to try his hand at flipping. Expert house flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are able to bring in a gain of forty to fifty grand on a regular basis. And sure, they are helped in a big way as a result of their professional know-how, auction abilities and understanding of hard money loans. On the other hand, you are assured that your first class rehab and remodeling talents can help you do an outstanding job on this property — additionally, you've already arranged to have one of the best contractors in the business to take on this job.
But where can you obtain the necessary funding for flipping? In the event you go after a regular bank loan, you will have to wait approximately one to two months up until the loan is authorized and the money is available. Thus if you happen to be looking for a fast closing, you must understand that this may cost you a couple weeks, making you miss out on the opportunity.
With banks establishing tougher loan criteria in recent times, it is more challenging for a self-employed individual to obtain a home loan, particularly if his credit situation is not flawless. So does this mean you have no option, but to abandon your aspiration of getting into home flipping? Certainly not, given that you always have the Dolton hard money loan alternative.
A hard money home loan in Dolton promises what is possibly most sought after by real estate investors — a fast closing time of as few as 2 weeks. Aside from that, financing can be made up to 70% loan-to-value of the "as is" home's valuation, as deemed by a professional appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be higher in price than bank lending options. But in reality, the lending rate isn't as pertinent for these loans, given that they aren't long-term financing. The price tag on such short-term loans ought to be evaluated on par with any other financial outlay that you would encounter in the course of the project. Right after you fix up and unload the property, recuperating this expense is just like recovering the cost of the new kitchen appliances you placed into the home.
Aside from that, hard money mortgages are not difficult to qualify for, regardless if you have got a weak credit score. Instead of focusing only on the borrower's credit score or source of income, Dolton hard money lenders, who may be a privately owned company or an individual, say yes to a loan as a result of evaluating the home value, its marketability, where it is located, and the probability of recuperating their money should they have to foreclose the loan. Additional variables that impact a person's eligibility for a hard money real estate loan include what amount of money he is able to put into a down payment, his former experience being a real estate investor, and price range of comparable, recently sold homes nearby.
If you happen to have stumbled upon a wonderful real estate opportunity with a huge probability of returns, you have also found yourself a hard money lender in Dolton that's willing to fund your fix and flip ventures. Fill out the contact form on this page or give us a call and let's discuss the property you have in mind.
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