Hard Money Loans in Elk Grove Village
There's this phenomenal opportunity to fix and flip this wonderful outdated property in a good part of town and it seems like the deal you've been expecting for quite a while. A majority of people know that skilled professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping program, Fix or Flop, are able to generate a typical profit margin of $40,000 to $50,000 in their rehab business. It goes without saying their rehabbing experience, understanding of hard money loans, expertise in their housing market, and auction skills have been major factors to their successes. That said, you have also been cultivating your rehab and remodeling skills, have got a contractor lined up and are positive that you're capable of doing a stellar job on this property.
But how do real estate investors get money? If you approach a regular lending institution, such as a bank for financing, it's very likely going to take, at a minimum, thirty to sixty days for your approval to be completed and your funds to be accessible. So if you will be wishing for a fast closing, it is important to recognize that this will set you back by a few weeks, making you lose out on the house.
On top of this, banks have been tightening their lending requirements as of late, rendering it more difficult for people to get an ordinary loan if their credit situation is not flawless or he doesn't have a regular salaried occupation. So will a lack of funding keep you from sticking to your aspirations? Certainly not, on the grounds that you can always use the Elk Grove Village hard money loan approach to finance your rehab project.
A hard money home loan in Elk Grove Village gives you what's possibly most important to real estate investors — a quick closing time period of as few as 2 weeks. Aside from that, financing is made up to 70% loan-to-value of the as-is home's valuation, as established by a professional appraiser. Some individuals believe hard money real estate loans to be costlier than standard financing, since the lending rates of such loans commonly start off at 10%. But the term lengths for these loans tend to be relatively shorter, which means the interest rate is much less significant. When it comes to short-term loans of several years or less, you should think about them much like you would other expenses for your project. And once you've turned the property or home, recovering this expense is identical to recovering the expense for the bathroom updates you performed.
Aside from that, hard money mortgages are easy qualifying, even if you posses bad credit. The borrower's credit score will not be the exclusive deciding factor for Elk Grove Village hard money lenders — they also look at the house, what is it valued at, its location, and its potential to return their financial commitment if things do not go as intended. Several other criteria that have an impact on an applicant's acceptance for a hard money real estate loan can include the amount he is able to put into a down payment, his prior experience as a real estate investor, and price range of similar, just recently sold homes in the vicinity.
If you happen to have stumbled on a really great home to flip with a huge probability of returns, you've also found yourself a hard money lender in Elk Grove Village that is willing to finance your rehab ventures. Submit the contact form or get in touch with us via phone to talk about the project you have in mind.
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