Hard Money Loans in Highland Park
A fabulous deal on a fix and flip property in a very good area of the city suddenly shows up — sounds so good that it is difficult to believe. You've probably heard that competent house flippers, such as the couple on HGTV's Flip or Flop, enjoy a remarkable average profit margin near forty to fifty thousand dollars. And without a doubt, they are helped in a big way due to their professional experience, auction expertise and knowledge of hard money loans. However, you are certain that your impressive rehab and renovation abilities will assist you to do an outstanding job for this project — what's more, you have already arranged to have one of the finest general contractors in the area to take on this job.
But money is often a different question entirely. If you approach a customary lender, such as a bank for a mortgage loan, it's in all likelihood going to take no less than 30-60 days for the acceptance to be completed and your money to be dispersed. So if you happen to be hoping for a fast closing, it's important for you to understand that this may set you back by a couple of weeks, causing you to lose out on the opportunity.
As well as this, should you have a sub-optimal credit score or don't have a conventional income source, it usually is harder for you to be eligible for a bank financing, considering the more stringent loan guidelines banks have put in place lately. So will inadequate funds stop you from sticking with your dream? Not at all, especially when Highland Park hard money loans can help you achieve many amazing things in the real estate world.
A hard money home loan in Highland Park offers what is viewed as vital to most real estate deals — a fast closing of just a few weeks and oftentimes even less. Furthermore, hard money lenders are able to do lending up to 70% LTV of the home value, as calculated by a certified third-party evaluation. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be more costly than bank loans. But usually, the rate of interest isn't as relevant for these loans, given that they will never be long-term loans. Short-term loans of several months to a handful of years are best looked at in terms of cost of capital, the same as all other expenses associated with a project. And when you have turned the property or home, recouping this expense is comparable to recuperating the expense for the bathroom upgrades you did.
What's more, it isn't difficult to obtain a hard money mortgage, even when your credit situation is not that superb. Highland Park hard money lenders do not take on a loan strictly based on the borrower's credit score — rather they will analyze the home, where it is located and how much it is worth, and the home's capability to pay back the financing on its own. Additional variables that impact a person's acceptance for a hard money real estate loan can include how much money he is able to put towards a down payment, his past experience being a real estate investor, and price of comparable, recently sold properties nearby.
So should you come across a good and worthwhile flipping opportunity, feel comfortable knowing you will have a hard money lender in Highland Park, in a position to lend you the cash you'll need. Fill out the contact form on this page or give us a call and let's talk about your property.
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