Hard Money Loans in Farmer City
There is this phenomenal opportunity to fix and flip this wonderful out of date home in a very good area and it seems a lot like the deal you've been wanting for quite some time. Everyone knows that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can turn an average profit margin of $40,000 to $50,000 when they flip properties. Of course, you also are aware that their successes are due to the fact that they're experts, are knowledgeable in hard money loans, they understand the market really well and they also are good at working a public auction for getting a reasonable price. That said, you've recently been developing your rehab and renovation knowledge, have a very good general contractor lined up and are certain that you can do a bang up job for this home.
But funding can be a different problem entirely. When you approach a regular lender, like a bank for a loan, it is in all likelihood going to take, at a minimum, 30-60 days for the acceptance to be completed and your money to be furnished. Thus if you happen to be looking for a fast closing, you must realize that this may set you back by a couple of weeks, making you miss out on the sale.
What's more, if you have a sub-optimal credit score or do not have a routine source of income, it is normally tougher to be eligible for a bank loan, seeing the stricter loan criteria banks have issued recently. So does that leave you with no option, but to drop your ambition of getting into home renovating? Not at all, especially while Farmer City hard money loans enable you to accomplish many amazing things in the real estate world.
A hard money home loan in Farmer City boasts what's possibly most crucial to real estate investors — a fast closing time period of as few as 2 weeks. Besides that, hard money lenders are able to do lending up to 70% LTV of the home's valuation, as estimated by a certified third-party evaluator. Some people believe hard money real estate loans to be higher priced than customary financing, since the interest rates of such loans normally start at 10%. But the term lengths for these loans tend to be relatively shorter, which makes the rate much less important. The cost of such short-term loans should be evaluated on par with every other cost that you will encounter during the project. Once you've turned the property and have made a positive gain, you can recover this expense from the home — much like recuperating the cost of brand-new appliances for the kitchen that you've installed.
Also, it isn't difficult to qualify for a hard money mortgage, even when your credit score is not that impressive. The applicant's credit score will not be the exclusive deciding factor for Farmer City hard money lenders — in addition, they examine the piece of real estate, its market value, its location, and its ability to earn back their investment if things should not work out as intended. Adding to this, if the borrower can demonstrate past experience in comparable real estate endeavors, can put down cash towards a down payment, and the value of comparable homes in the vicinity works in his favor, he will have a good shot of being eligible to obtain a hard money real estate loan.
Finding a hard money lender in Farmer City to finance your real estate project is not hard, assuming that the opportunity before you is promising and offers the right potential for returns. Complete the contact form on this page or get in touch with us via phone and let's discuss your property.
A loan specialist will be in touch shortly