Hard Money Loans in Glencoe

An outstanding buy on a fix and flip opportunity located in a nice subdivision suddenly shows up — sounds too good to be true. Everybody knows that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping show, Fix or Flop, are able to generate a typical profit margin of $40,000 to $50,000 when they rehab properties. And indeed, they are helped in a major way due to their professional knowledge, auction skills and understanding of hard money loans. Nevertheless, you're assured that your impressive rehab and remodeling abilities can help you do an outstanding job for this home — furthermore, you already have lined up one of the best building contractors in the business to take on the job.

But capital is often a separate issue entirely. Should you approach a regular lender, much like a bank for a mortgage loan, it can take, as a minimum, four to eight weeks for your acceptance to be completed and the money to be given out. With all the home owners seeking a fast closing, that does not seem like a wise idea to you in the slightest.

As well as this, should you have a sub-optimal credit score or don't receive a regular income source, it usually is more difficult for you to qualify for a bank loan, seeing the tougher loan guidelines banks have introduced as of late. So does that mean you are without an option, but to abandon your aspiration of getting into home flipping? By no means, especially when hard money loans will assist you to realize many amazing things in real estate.

A hard money home loan in offers what's viewed as vital to many real estate sales — a very fast closing of only a couple of weeks and at many times even less. In addition, the LTV value can go up to 70% of the place's valuation, as evaluated by a competent appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more costly than bank lending products. But the term lengths for these loans are quite shorter, which means the interest rate is less significant. Short-term loans of several months to a handful of years are best thought of in terms of cost of capital, similar to every other expenditure related to a project. And once you've finally sold the home, recouping this expense is comparable to recovering the expense for the bathroom or other upgrades you performed.

Furthermore, even someone with poor credit will be able to be eligible for a hard money mortgage. hard money lenders do not approve a loan solely judging by the person's credit score — rather they also examine the property, its location and value, and the home's capability to pay back the loan on its own. The amount that a borrower can put down in advance towards the property or home, his real estate experience, and selling price of comparative homes in the same area are other details that go into analyzing an individual's eligibility for a hard money real estate loan.

So any time you run into a really good and profitable investment opportunity, relax knowing you'll have a hard money lender in , in a position to loan you the funds that you need. Fill out the contact form or get in touch with us via phone to discuss your property.

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Investment property loans only please, no primary residences at this time.