Hard Money Loans in Evanston
Suppose you've run across this truly good deal on a fix and flip property located in an ideal location, and you are either a seasoned real estate investor or a first-timer who wants to try his hand at flipping. You've heard that professional home flippers, like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average return of around $40,000 – $50,000. Undoubtedly, you also recognize that their great results can be credited to the fact that they're industry experts, are proficient in hard money loans, they understand the market really well and they also know how to work an auction to buy their homes at an appropriate deal. Nonetheless, your rehab and renovation skills aren't that bad either — besides, you have already found a suitable general contractor to start the job.
But financing can be a separate problem entirely. A conventional lending institution, for instance a bank, takes at least 1 to 2 months to authorize the mortgage and provide the cash. Since most sellers favor a fast closing, you might have to start searching for additional financing options.
What's more, should you have an unfavorable credit rating or do not have a consistent income, it is normally more difficult for you to qualify for a bank loan, with the tougher loan requirements banks have put in place recently. So do you have to admit defeat and forego your desire to embark into the real estate market? Under no circumstances, particularly when Evanston hard money loans can help you achieve great things in real estate.
A hard money home loan in Evanston provides what's possibly most desired by real estate investors — a very fast closing in as little as 2 weeks. Additionally, loan amounts are made up to 70% loan-to-value of the as-is house's valuation, as calculated by a qualified appraiser. A number of people consider hard money real estate loans to be more costly than standard loans, because the interest rates of such loans ordinarily start off at 10%. But if you appreciate that these loans are not long-term loans, the interest rate may be misleading. The cost of such short-term loans should be evaluated on par with every other cost that you might encounter during the project. And once you have finally turned the property, recuperating this expense is comparable to recuperating the expense for all the bathroom or other updates you performed.
Furthermore, even a person with poor credit can still qualify for a hard money mortgage. Evanston hard money lenders do not authorize a loan exclusively on the basis of the person's credit score — rather they will assess the property, where it is located and what it is worth, and the property's ability to pay back the loan on its own. How much money a borrower can put down in advance towards the property, how much practical experience he has in real estate investments, and price range of comparative homes in the same vicinity are various other factors that go into determining a borrower's eligibility for a hard money real estate loan.
Searching for a hard money lender in Evanston to finance your flipping business is not hard, so long as the opportunity that lies before you is promising and has the right prospect for returns. Enter your info into the form on this page or get in touch with us via phone and let's discuss your project.
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