Hard Money Loans in Glencoe
An outstanding bargain on a fix and flip opportunity in a nice area of the city suddenly turns up — seems too good to be true. You've heard that veteran property flippers, such as the husband and wife on HGTV's Flip or Flop, enjoy an impressive average return close to $40,000 – $50,000. It goes without saying their rehabbing experience, knowledge of hard money loans, expertise in their market, and auction skills have played a big part in their successes. On the other hand, you're convinced that your first class rehab and renovation talents will help you do a superb job for this house — additionally, you already have arranged to have one of the best contractors in the business to work on the project.
But where do you find the necessary financing for home flipping? When you get in touch with a regular lender, such as a bank for a mortgage loan, it's more than likely going to take a minimum of thirty to sixty days for your approval to come through and your funds to be distributed. Because most home owners prefer a fast closing, you may want to begin seeking out additional funding options.
Furthermore, in case you have a less-than-perfect credit rating or do not have a consistent income, it is normally harder for you to be eligible for a bank loan, considering the stricter loan criteria banks have introduced of late. So does that leave you with no other option, but to drop your aspiration of venturing into the fix and flip business? Certainly not, given that you also have the Glencoe hard money loan option.
A hard money home loan in Glencoe provides what is viewed as imperative to many real estate transactions — a fast closing of just a 2-3 weeks and oftentimes even less. Further, loans can be made up to 70% loan-to-value of the "as is" valuation, as determined by a licensed appraiser. With loan rates starting off around 10%, hard money real estate loans may appear, at first, to be higher in price in comparison with traditional bank loans. But once you understand these are not long-term loans, the interest rate may be misleading. When it comes to short-term loans of a handful of years or even less, you should think about them identical to any kind of other expense for the project. Right after you fix up and sell off the property, recovering this expense is no different than recouping the one for stainless steel appliances you placed into the place.
In addition, even individuals with poor credit can easily be eligible for a hard money mortgage. Instead of focusing exclusively on the borrower's credit score or net income, Glencoe hard money lenders, who may be a private company or an individual, authorize a loan as a result of examining the home value, its salability, its location, and the odds of recouping their capital in case they have to foreclose the loan. Adding to this, if the borrower have proven experience in equivalent real estate projects, can put down money for a down payment, and the price of equivalent houses in the neighborhood works in his favor, he has an excellent likelihood of qualifying for a hard money real estate loan.
Finding a hard money lender in Glencoe to finance your real estate project is not very hard, provided that the opportunity that lies ahead of you is promising and offers the right prospect for returns. Complete the form on this page or get in touch with us via phone to talk about the property or properties you have in mind.
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