Hard Money Loans in Elgin
An outstanding deal on a fix and flip opportunity located in a good neighborhood shows up out of the blue — seems so good that it is hard to believe. You may have heard that veteran property flippers, like the couple on HGTV's Flip or Flop, turn a remarkable average profit near forty to fifty thousand dollars. It goes without saying their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction skills have had a big role in their results. Still, your rehab and renovation knowledge isn't bad either — in any case, you have already found an ideal building contractor to start the job.
But where can you get the needed capital for home flipping? When you meet with a customary lender, such as a bank for a loan, it likely will take, as a minimum, 4-8 weeks for your approval to be completed and your money to be distributed. So if you happen to be anticipating a fast closing, it's important to understand or know that this may cost you weeks, making you lose out on the house.
With banks adding tougher loan standards in the last few years, it is harder for a self-employed individual to get a home loan, especially if his credit circumstances are not optimal. So does this mean you have no option, but to give up your ambition of getting into rehabbing? Certainly not, seeing as you also have the Elgin hard money loan alternative.
A hard money home loan in Elgin can provide what is deemed crucial to most real estate deals — a quick closing of just a few weeks and at many times even less. Plus, the LTV value can go up to 70% of the property value, as estimated by a competent appraiser. With the loan rates starting off near 10%, hard money real estate loans may seem, at first glance, to be higher priced when compared with conventional bank lending products. But when you appreciate that these loans are not long-term loans, the rate of interest tends to be misleading. As it pertains to short-term loans of several years or even less, you should look at them similar to any other expense for your project. After you remodel and sell off the house, recovering this expense is no different than recuperating the money you spent for home appliances you installed in the home.
What's more, it's easy to be eligible for a hard money mortgage, regardless of whether your credit situation is not that superb. Instead of focusing entirely on the person's credit score or income, Elgin hard money lenders, who can be a private company or an individual person, say yes to a loan after evaluating the home value, how easy it will be to market, its location, and the likelihood of recouping their capital if they have to foreclose the loan. Additional criteria that affect a customer's approval for a hard money real estate loan include what amount of money he is able to put towards a down payment, his former experience as a real estate investor, and price range of comparable, recently sold homes in the area.
Locating a hard money lender in Elgin to finance your renovation project is not very challenging, as long as the opportunity before you is promising and boasts the right prospect for returns. Fill out the form on this page or give us a call and let's discuss the project you have in mind.
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