Hard Money Loans in Island Lake
A fabulous bargain on a fix and flip opportunity located in a nice neighborhood all of a sudden shows up — seems too good to be true. Everyone knows that knowledgeable professional flippers, along the lines of Tarek and Christina El Moussa who star in HGTV's reality home flipping show, Fix or Flop, can earn an average profit of forty to fifty thousand dollars on their home projects. Without question, their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have been large factors to their success. Nonetheless, your rehab and renovation skills aren't that bad either — aside from that, you have already found a good contractor to take on the home.
But capital is often a different question entirely. For those who go after a traditional loan via a bank, you will need to wait roughly 30-60 days until the financing is authorized and your funds are accessible. Since the majority of home owners prefer a fast closing, it may be best to begin searching for some other funding alternatives.
With banks adding tougher loan guidelines in the past few years, it is harder for a self-employed individual to get a mortgage loan, particularly if his credit rating is not optimal. So will inadequate financing stop you from sticking with your aspirations? Most certainly not, because you always have the Island Lake hard money loan option.
If you should put in an application for a hard money home loan in Island Lake, you'll get what's probably most essential to real estate transactions throughout the country — a quick closing of about a couple weeks. What's more, the LTV value can range up to 70% of the property's valuation, as determined by a competent appraiser. At first, hard money real estate loans, with starting lending rates of 10%, could be seen as more expensive than bank financing. But usually, the rate of interest is not as relevant for these loans, since they are not long-term financing. Short-term loans of a couple months to a handful of years are best approached in terms of cost of capital, the same as any other financial outlay involved with a project. And as soon as you have flipped the home, recouping this expense is the exact same as recouping the expense for the bathroom or other improvements you performed.
Apart from this, hard money mortgages are easy qualifying, even if you have a weak credit score. Island Lake hard money lenders do not authorize a loan strictly judging by the customer's credit score — instead they will look at the home, where it is located and how much it is worth, and the home's capacity to pay back the financing independent of the applicant. The total amount that a person can put down in advance towards the home, his past real estate experience, and selling price of comparable homes in the same neighborhood are other factors that go into determining a person's eligibility for a hard money real estate loan.
So in case you have stumbled on a really good fixer-upper with a high prospect of returns, you've also stumbled upon a hard money lender in Island Lake that's prepared to provide funding for your rehab project. Enter your info into the contact form on this page or call us and let's talk about your project.
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