Hard Money Loans in Harwood Heights
You discovered this amazing opportunity to renovate and flip this wonderful old home in a good part of town and it looks a lot like the deal you've been expecting for a long time. Most folks know that capable professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality flipping program, Fix or Flop, can make a typical profit margin of forty to fifty thousand dollars on their flips. It's fair to say their rehabbing experience, understanding of hard money loans, expertise in their market, and auction talents have been large factors to their successes. Nonetheless, your rehab and renovation skills aren't that bad either — in any case, you've already located a good building contractor to handle the job.
But financing can be a separate issue entirely. A standard lender, like for example a bank, takes at least one to two months to approve the loan and deliver the capital. Due to the fact all the home owners are wanting to find a fast closing, that does not appear to be a good option to you at all.
With banks establishing tougher loan standards in the past few years, it's become more difficult for a self-employed individual to obtain a home loan, particularly if his credit circumstances are not perfect. So should you give up and abandon your dream to get into fix and flips? Never, because you can always use the Harwood Heights hard money loan approach to pay for your flipping project.
If you decide to obtain a hard money home loan in Harwood Heights, you're going to get what is probably most essential to real estate negotiations throughout the country — a very fast closing of about two weeks. Aside from that, loan amounts can be made up to 70% loan-to-value of the as-is property's valuation, as determined by a professional appraiser. With the rates starting out near 10%, hard money real estate loans might appear, initially, to be higher in price compared to traditional bank financing. But once you understand these are not long-term mortgage loans, the rate can be misleading. The price tag on such short-term loans ought to be evaluated much like any other expense that you will encounter in the course of the project. And once you have sold the property or home, recovering this expense is the exact same as recuperating the expense for all the bathroom or other improvements you did.
Moreover, even individuals with poor credit can still qualify for a hard money mortgage. The borrower's credit score is not the sole deciding factor for Harwood Heights hard money lenders — additionally, they evaluate the property, its market value, where it is located, and its capability to return their investment if everything does not go as intended. How much an applicant can put down beforehand towards the house, how much experience he has in real estate investments, and price range of comparable homes in the vicinity are additional factors that go into analyzing a borrower's suitability for a hard money real estate loan.
If you happen to have stumbled upon a really good real estate opportunity with a high prospect of returns, you've also stumbled upon a hard money lender in Harwood Heights who is willing to provide funding for your rehab project. Submit the contact form or call us and let's discuss the project you have in mind.
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