Hard Money Loans in Highland Park
There is this outstanding possibility for renovating and flipping this nice old property or home in a good location and it seems a lot like the one you've been anticipating for quite some time. Everyone knows that skilled professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping program, Fix or Flop, are able to earn an average profit of forty to fifty thousand dollars in their rehab business. Naturally, you also realize that their great results can be credited to the simple fact that they are industry experts, are knowledgeable in hard money loans, they understand the marketplace really well and in addition, they are good at working a public auction to buy their properties at a reasonable deal. Nonetheless, your rehab and renovation knowledge isn't bad either — aside from that, you've already identified the right licensed contractor to handle the project.
But where can real estate investors find financing? A traditional lending institution, say for example a bank, takes at least 1-2 months to approve the financing and deliver the capital. So if you will be hoping for a fast closing, it is important you be aware that this may set you back by a couple of weeks, making you lose out on the sale.
To add to it, banks have been tightening up their lending standards in recent times, which makes it difficult for people to receive a regular loan if their credit score is not perfect or he is lacking a consistent salaried occupation. So will a lack of funding keep you from following your aspirations? Never, because you can always go the Highland Park hard money loan route to finance your rehab project.
A hard money home loan in Highland Park gives you what is regarded as imperative to most real estate sales — a fast closing of just a 2-3 weeks and oftentimes less. Additionally, financing can be done for up to 70% loan-to-value of the as-is valuation, as established by a professional appraiser. Some people regard hard money real estate loans to be higher priced than regular financing, considering interest rates for these loans generally start out at 10%. But the term lengths for these loans tend to be quite short, which means the interest rate is much less significant. When it comes to short-term loans of one or two years or even less, you should look at them much like you would other expenditures for your project. After you rehab and unload the house, recouping this expense is no different than recouping the cost of the home appliances you installed in the home.
In addition, even a person with low credit can still qualify for a hard money mortgage. The customer's credit score will not be the primary deciding factor for Highland Park hard money lenders — they also look at the piece of real estate, its market value, where it is located, and its capability to return their financial commitment if everything does not work out as intended. The amount that a borrower can put down in advance towards the property or home, his real estate experience, and selling price of comparative homes in the area are additional factors that go into ascertaining a borrower's suitability for a hard money real estate loan.
So should you run into an outstanding and worthwhile investment opportunity, rest assured you'll have a hard money lender in Highland Park, in a position to lend you the cash you will need. Fill out the contact form or get in touch with us via phone to talk about the project you have in mind.
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