Hard Money Loans in East Chicago
There's this outstanding possibility for fixing and flipping this wonderful old property in a fantastic location and it looks a lot like the deal you have been wanting for quite some time. Everybody knows that expert professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping series, Fix or Flop, can earn a typical profit margin of $40,000 to $50,000 in their rehab business. Undoubtedly, you also recognize that their great results can be attributed to the fact that they're industry experts, are well versed in hard money loans, they know market trends really well and furthermore, they know how to work an auction for getting a good price. With that being said, you have likewise been brushing up your rehab and renovation skills, have got a contractor arranged and are confident that you're capable of doing an impressive job on this house.
But how do you get the needed capital for flipping? When you apply for a traditional loan from the bank, you will need to wait around somewhere around one to two months until eventually the mortgage is authorized and your money is available. With the home owners wanting a fast closing, that doesn't appear to be a good idea to you at all.
With banks establishing more challenging loan standards in the last few years, it's become much harder for a self-employed individual to obtain a mortgage loan, especially if his credit situation is not optimal. So does this leave you with no option, but to drop your aspiration to venture into home flipping? Definitely not, because you always have the East Chicago hard money loan alternative.
A hard money home loan in East Chicago boasts what is possibly most desired by real estate investors — a fast closing in as few as 2 weeks. Aside from that, financing is made up to 70% loan-to-value of the "as is" valuation, as deemed by a qualified appraiser. With the loan rates starting off near 10%, hard money real estate loans may appear, at first glance, to be more expensive compared to traditional bank loans. But if you consider these are not long-term home loans, the rate may be misleading. The price of such short-term loans should be looked at on par with every other financial outlay that you would need to meet pertaining to the project. After you rehab and resell the property, recuperating this expense is the same as recovering the money you spent for home appliances you placed into the home.
Furthermore, even a person with low credit can still be eligible for a hard money mortgage. As an alternative for focusing solely on the borrower's credit score or wages, East Chicago hard money lenders, who may be a private company or an individual person, authorize a loan after analyzing the home value, its salability, where it is located, and the possibility of recouping their money in the event of foreclosure. On top of this, if the borrower have proven experience in equivalent real estate ventures, can place down money for the down payment, and the cost of comparable homes in the vicinity works in his favor, he has a good likelihood of being approved to obtain a hard money real estate loan.
So in case you have stumbled on a really good home to flip with a huge chance of returns, you've also stumbled upon a hard money lender in East Chicago that's willing to fund your rehab venture. Fill out the form or get in touch with us via phone and let's discuss your project.
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