Hard Money Loans in Fairview Heights
Imagine you've stumbled upon this really great bargain on a fix and flip property in a terrific neighborhood, and you're either an experienced real estate investor or a newbie who is looking to try his hand at flipping. You may have heard that professional home flippers, much like the couple on HGTV's Flip or Flop, turn an impressive average profit of around forty to fifty thousand dollars. Of course, you also understand that their results can be attributed to the fact that they are professionals, are well versed in hard money loans, they know the marketplace quite well and furthermore, they know how to work a public auction for getting a good deal. Nonetheless, your rehab and remodeling skills aren't that bad either — in any case, you have already identified an ideal contractor to start the project.
But money is often a different issue entirely. A standard lending institution, for instance a bank, takes a minimum of one to two months to approve the mortgage and deliver the funds. Thus if you happen to be looking for a fast closing, you must realize that this could cost you a couple of weeks, causing you to lose out on the house.
With banks bringing in more challenging loan standards in the recent past, it has become tougher for a self-employed person to obtain a mortgage loan, especially when his credit circumstances are not flawless. So does that mean you have no option, but to abandon your aspiration to venture into home renovating? By no means, considering that you can always go the Fairview Heights hard money loan route to pay for your rehab project.
Should you opt for a hard money home loan in Fairview Heights, you have access to what's possibly most essential to real estate negotiations throughout the country — a quick closing of about 2 weeks. Aside from that, financing can be made up to 70% loan-to-value of the as-is value, as deemed by a licensed appraiser. With the lending rates starting out near 10%, hard money real estate loans may seem, initially, to be more costly when compared with conventional bank loans. But the lengths of these loans are relatively shorter, making the rate much less significant. The price of such short-term loans ought to be viewed much like every other expense that you would encounter in the course of the project. Once you've sold the home and have made a positive profit, you can reclaim this expense from the house — the same as recouping the money spent on the brand-new kitchen appliances that you installed.
Apart from this, hard money mortgages are not hard to qualify for, even in the event you have got a bad credit score. The borrower's credit score is not the sole determining factor for Fairview Heights hard money lenders — they also examine the piece of real estate, its market value, its location, and its capacity to earn back their investment if things should not work out as intended. Several other variables that have an impact on a customer's eligibility for a hard money real estate loan include what amount of money he can put into a down payment, his previous experience as a real estate investor, and selling price of comparative, fairly recently sold properties in the area.
So in case you have stumbled on a wonderful real estate opportunity with a huge potential for returns, you've also found yourself a hard money lender in Fairview Heights that's prepared to finance your fix and flip project. Enter your info into the form or give us a call to discuss your project.
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