Hard Money Loans in Glen Ellyn
Suppose you've encountered this truly good deal for a fix and flip property you found in a great neighborhood, and you're either a seasoned real estate investor or a first-timer who really wants to try his hand at flipping. You've heard that professional property flippers, like the husband and wife on HGTV's Flip or Flop, turn a remarkable average return of around $40,000 – $50,000. Undoubtedly, you also realize that their results are credited to the fact that they're professionals, are proficient in hard money loans, they understand the market really well and they also know how to work an auction for getting an appropriate price. Having said that, you have also been cultivating your rehab and renovation knowledge, have got a contractor lined up and are certain that you will be able to do an impressive job for this home.
But where precisely can real estate investors get capital? A traditional lending institution, say for example a bank, takes at least 1-2 months to approve the mortgage and hand over the funds. Since most home owners would prefer a fast closing, you might need to begin searching for other funding alternatives.
With banks bringing in tougher loan guidelines in recent years, it's become more challenging for a self-employed person to find a mortgage loan, particularly if his credit circumstances are not perfect. So do you have to give up and forego your aspiration to venture into real estate? Never, due to the fact you can always go the Glen Ellyn hard money loan route to pay for your flipping project.
If you get a hard money home loan in Glen Ellyn, you'll get what's possibly most vital to real estate transactions across the country — a fast closing of approximately 2 weeks. Additionally, financing can be made up to 70% loan-to-value of the "as is" home value, as established by a licensed appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more expensive than bank lending products. But in reality, the rate of interest is not as useful a measure for these loans, given that they will never be long-term loans. The price tag on such short-term loans should be evaluated much like every other cost that you would have to meet pertaining to the project. Once you have resold the property or home and have made a positive return, you're able to recoup this expense from the property or home — very much like recovering the money necessary for the brand-new home appliances that you have installed.
Additionally, it isn't difficult to be eligible for a a hard money mortgage, even if your credit rating is not that great. The borrower's credit score will not be the single deciding factor for Glen Ellyn hard money lenders — in addition, they look at the home, what is it valued at, where it is located, and its potential to return their investment if things should not work out as intended. How much money an individual can put down beforehand for the property, his real estate experience, and selling price of comparable homes in the vicinity are additional details that go into ascertaining an individual's qualification for a hard money real estate loan.
Searching for a hard money lender in Glen Ellyn to cover expenses for your fix and flip endeavor is not very challenging, so long as the opportunity that lies ahead of you is promising and has a good potential for returns. Complete the form or get in touch with us via phone and let's discuss your project.
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