Hard Money Loans in Glendale Heights
There's this amazing opportunity to renovate and flip this nice out of date property in a good area and it seems a lot like the deal you have been expecting for quite some time. You may have heard that veteran home flippers, much like the husband and wife on HGTV's Flip or Flop, enjoy an impressive average profit margin of around $40,000 – $50,000. Of course, you also realize that their great results can be credited to the fact that they're professionals, are proficient in hard money loans, they understand the market quite well and furthermore, they are good at working an auction to purchase their properties at a reasonable price. Still, your rehab and renovation knowledge isn't bad either — in any case, you've already found an ideal general contractor to start the job.
But where can real estate investors find capital? In the event you approach a standard lending institution, such as a bank for financing, it's very likely going to take, at the very least, four to eight weeks for the approval to be completed and your money to be dispersed. So if you will be looking for a fast closing, it is important to be aware that this could cost you weeks, causing you to lose out on the house.
As well as this, should you have a less-than-perfect credit rating or don't receive a regular income source, it usually is harder to qualify for a bank loan, seeing the stricter loan criteria banks have introduced in recent times. So will a lack of funds stop you from pursuing your aspirations? Certainly not, because you can always go the Glendale Heights hard money loan route to finance your rehab project.
A hard money home loan in Glendale Heights offers you what is viewed as essential to many real estate transactions — a quick closing of only a 2-3 weeks and at times less. Further, loan amounts can be done for up to 70% loan-to-value of the as-is property value, as deemed by a licensed appraiser. A number of people believe hard money real estate loans to be higher in price than customary financing, since the lending rates for such loans commonly start out at 10%. But when you consider these loans are not long-term mortgage loans, the interest rate can be misleading. Short-term loans of a couple of months to a few years are best understood as cost of capital, similar to any other financial outlay involved with a project. After you renovate and sell off the home, recouping this expense is no different than recuperating the cost of the stainless steel appliances you placed into the property.
In addition, even someone with weak credit will be able to be eligible for a hard money mortgage. Glendale Heights hard money lenders do not take on a loan exclusively according to the person's credit score — instead they also look at the property or home, its value and location, and the home's ability to pay back the loan independent of the borrower. Several other criteria that have an impact on a customer's approval for a hard money real estate loan include what amount of money he is in a position to put towards a down payment, his past experience being a real estate investor, and price of similar, fairly recently sold homes in the vicinity.
So should you run into an outstanding and lucrative flipping opportunity, relax knowing you'll have a hard money lender in Glendale Heights, prepared to loan you the capital you need. Fill out the form on this page or give us a call to discuss the property you have in mind.
A loan specialist will be in touch shortly