Hard Money Loans in Evergreen Park
Suppose that you've run across this truly good deal on a fix and flip property you found in a terrific neighborhood, and you're either a seasoned real estate investor or a first-timer who is looking to try out flipping houses. Expert home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of earning a gain of $40-$50k on average. It's fair to say their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction skills have had a big part in their success. With that being said, you have also been brushing up your rehab and renovation knowledge, have got a licensed contractor arranged and are confident that you can do a bang up job for this house.
But where precisely do real estate investors obtain funds? A standard lender, for instance a bank, takes a minimum of 1-2 months to approve the mortgage and hand over the monies. With all the sellers wanting a fast closing, that does not appear to be a good option to you at all.
With banks bringing in harder loan criteria in recent times, it's become much harder for a self-employed individual to obtain a home loan, especially when his credit score is not flawless. So will inadequate funding prevent you from pursuing your ambitions? Not at all, especially while Evergreen Park hard money loans can help you realize great things in the real estate world.
A hard money home loan in Evergreen Park provides you with what's possibly most essential to real estate investors — a very fast closing time period of as few as 2 weeks. Further, loan amounts can be done for up to 70% loan-to-value of the as-is property's valuation, as determined by a professional appraiser. With lending rates starting at about 10%, hard money real estate loans might appear, at first, to be more costly as compared with conventional bank financing. But when you consider these are not long-term mortgage loans, the rate of interest can be misleading. The price of such short-term loans ought to be considered on par with every other expenditure that you will have to meet for the project. Right after you rehab and unload the home, recuperating this expense is no different than recuperating the money you spent for stainless steel appliances you placed into the home.
Additionally, it isn't difficult to qualify for a hard money mortgage, regardless if your credit situation is not that extraordinary. As an alternative for focusing strictly on the borrower's credit score or net income, Evergreen Park hard money lenders, who could be a private company or an individual person, authorize a loan as a result of analyzing the property value, its salability, its location, and the likelihood of getting back their money in the event of foreclosure. Adding to this, if the borrower can demonstrate prior experience in comparable real estate ventures, can put down money for a down payment, and the cost of similar homes in the area works to his benefit, he has got a good shot of qualifying to obtain a hard money real estate loan.
So if you have stumbled upon an excellent home to flip with a huge prospect of returns, you've also found yourself a hard money lender in Evergreen Park that's willing to provide financing for your fix and flip ventures. Fill out the contact form or give us a call to discuss the property you have in mind.
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