Hard Money Loans in Fairbury
You discovered this amazing opportunity to fix and flip this nice out of date house in a good location and it seems like the one you've been eagerly waiting on for a long time. Most folks know that skilled professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, are able to turn an average profit of $40,000 to $50,000 in their rehab business. Without question, their past experiences rehabbing, knowledge of hard money loans, expertise in their housing market, and auction talents have had a significant part in their successes. Nonetheless, your rehab and remodeling skills aren't bad either — aside from that, you have already identified an ideal building contractor to handle the project.
But where can you obtain the necessary financing for flipping? Should you meet with a regular lending institution, such as a bank for financing, it's in all likelihood going to take no less than four to eight weeks for your approval to come through and the funds to be dispersed. Since the majority of sellers would rather have a fast closing, you might need to start searching for additional financing options.
With banks introducing harder loan guidelines in the past few years, it is now more challenging for a self-employed individual to find a home loan, especially when his credit score is not optimal. So does this mean you have no option, but to drop your aspiration to venture into rehabbing? Not at all, particularly when Fairbury hard money loans enable you to achieve many amazing things in the real estate world.
A hard money home loan in Fairbury offers you what's regarded as imperative to most real estate sales — a quick closing of only a few weeks and more often than not less. Further, loan amounts can be done for up to 70% loan-to-value of the as-is home value, as deemed by a licensed appraiser. On the surface, hard money real estate loans, with starting lending rates of 10%, could be seen as more costly than bank lending options. But usually, the rate of interest is not as pertinent for these loans, given that they are not long-term financing. As it pertains to short-term loans of a few years or less, you should consider them the same as you would for any other expense for the project. And once you've turned the property, recouping this expense is the exact same as recovering the expense for the bathroom or other updates you performed.
Aside from that, hard money mortgages are easy qualifying, even if you posses bad credit. The borrower's credit score is not the primary determining factor for Fairbury hard money lenders — additionally, they analyze the house, its market value, its location, and its ability to return their investment if everything does not work out as planned. On top of this, if the person can demonstrate prior experience in comparable real estate projects, can put down cash towards the down payment, and the cost of comparable properties in the area works in his favor, he will have a good shot of being approved to obtain a hard money real estate loan.
Locating a hard money lender in Fairbury to fund your flipping business is not very hard, as long as the opportunity before you is promising and offers a strong potential for returns. Fill out the contact form on this page or call us to talk about the project you have in mind.
A loan specialist will be in touch shortly