Hard Money Loans in Hanover Park
A remarkable deal on a fix and flip property located in a good neighborhood shows up out of the blue — sounds too good to be true. Everybody knows that knowledgeable professional flippers, like Tarek and Christina El Moussa who do HGTV's reality flipping series, Fix or Flop, are able to make an average profit margin of forty to fifty thousand dollars on their flips. Naturally, you also realize that their success can be attributed to the fact that they're experts, are well versed in hard money loans, they understand the market quite well and they also know how to work a public auction for getting a reasonable deal. That said, you have likewise been brushing up your rehab and renovation knowledge, have got a licensed contractor lined up and are confident that you're capable of doing a stellar job on this property.
But where do you obtain the necessary funding for home flipping? When you approach a regular lending institution, like a bank for funding, it's likely going to take, as a minimum, four to eight weeks for your acceptance to be completed and the money to be sent out. So if you will be anticipating a fast closing, it's important for you to recognize that this will set you back by a couple of weeks, causing you to lose out on the house.
With banks introducing harder loan criteria in recent years, it has become more difficult for a self-employed person to find a mortgage loan, especially if his credit rating is not optimal. So should you stop trying and forego your ambition to embark into real estate? By no means, because you could always go the Hanover Park hard money loan route to fund your home renovating project.
If you should apply for a hard money home loan in Hanover Park, you have access to what's possibly most essential to real estate offers throughout the country — a quick closing of approximately a couple weeks. Plus, the LTV value can reach up to 70% of the home value, as determined by a certified appraiser. With the interest rates starting off near 10%, hard money real estate loans might appear, initially, to be more costly compared to conventional bank loans. But the time frames of these loans tend to be comparatively shorter, which means the rate is less significant. Short-term loans of a couple months to a handful of years are best looked at in terms of cost of capital, very much like all other costs involved with a project. And as soon as you have flipped the property or home, recouping this expense is comparable to recuperating the expense for all the bathroom or other updates you performed.
Moreover, even a person with weak credit will be able to qualify for a hard money mortgage. Hanover Park hard money lenders don't authorize a loan strictly according to the customer's credit score — instead they also look at the property, its value and location, and the property's capacity to pay back the loan independent of the person. Adding to this, if the individual can demonstrate past experience in equivalent real estate projects, can place down cash for the down payment, and the price of similar houses in the neighborhood works in his favor, he stands a good likelihood of being eligible to get a hard money real estate loan.
So in case you have found a really great real estate opportunity with a significant potential for returns, you've also discovered a hard money lender in Hanover Park who is willing to provide funding for your fix and flip ventures. Submit the contact form on this page or give us a call to discuss the project you have in mind.
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