Hard Money Loans in Hickory Hills
Suppose that you've run across this truly good bargain for a fix and flip property located in an ideal location, and you happen to be either a skilled real estate investor or a first-timer who really wants to try his hand at flipping. Expert home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping show, are able to earn a profit of $40-$50k on most projects. And without a doubt, they are aided in a major way by their professional knowledge, auction skills and familiarity with hard money loans. Still, your rehab and remodeling knowledge isn't that bad either — aside from that, you've already identified the right general contractor to handle this home.
But how exactly do real estate investors get money? For those who meet with a common lending institution, much like a bank for a mortgage loan, it can take, at the very least, 30-60 days for the approval to come through and your funds to be accessible. So if you're anticipating a fast closing, you must understand that this could cost you weeks, making you lose out on the sale.
With banks establishing tougher loan guidelines in recent years, it is much harder for a self-employed person to find a mortgage loan, particularly if his credit score is not flawless. So must you stop trying and forego your desire to venture off into the real estate market? By no means, particularly when Hickory Hills hard money loans enable you to realize many amazing things in the real estate market.
A hard money home loan in Hickory Hills provides you with what is perhaps most important to real estate investors — a fast closing in as few as a few weeks. In addition, the LTV value can go up to 70% of the property's valuation, as evaluated by a certified appraiser. Some people consider hard money real estate loans to be more expensive than regular loans, considering lending rates for such loans typically start out at 10%. But the term lengths for these loans are relatively shorter, which makes the interest rate less significant. The price of such short-term loans ought to be evaluated on par with any other financial outlay that you would have to meet for the project. And once you have finally sold the house, recovering this expense is the exact same as recovering the expense for all the bathroom improvements you did.
Besides, hard money mortgages are not difficult to qualify for, even when you have got very bad credit. The customer's credit score isn't the primary determining factor for Hickory Hills hard money lenders — in addition, they evaluate the property, its market value, its location, and its capability to earn back their financial commitment if things do not work out as planned. Additional criteria that impact a customer's acceptance for a hard money real estate loan include what amount of money he is able to put towards a down payment, his previous experience as a real estate investor, and price of similar, just recently sold residences nearby.
Finding a hard money lender in Hickory Hills to help with expenses for your real estate project is not difficult, so long as the opportunity that lies before you is promising and offers the right potential for returns. Enter your info into the form on this page or get in touch with us via phone and let's talk about the property you have in mind.
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