Hard Money Loans in Joliet
A fantastic bargain on a fix and flip opportunity in a very good area of the city all of a sudden shows up — sounds so good that it's difficult to believe. Expert home flippers, such as the young married couple on Flip or Flop, HGTV's reality flipping program, are able to bring in a gain of forty to fifty grand as an average on multiple occassions. It goes without saying their past experiences rehabbing, understanding of hard money loans, familiarity with the housing market, and auction talents have played a significant role in their successes. Still, your rehab and remodeling knowledge isn't that bad either — aside from that, you've already found a suitable licensed contractor to tackle the project.
But money is often a different problem entirely. In the event you approach a regular lending institution, such as a bank for a mortgage loan, it is likely going to take, at a minimum, 30-60 days for the acceptance to be completed and the money to be distributed. Since the majority of sellers would rather have a fast closing, it may be advisable to begin seeking out additional funding alternatives.
To add to it, banks have been tightening their lending criteria in recent times, which makes it tough for a person to get a conventional home loan if their credit situation is not perfect or he does not have a consistent salaried occupation. So do you have to admit defeat and abandon your aspiration to venture off into real estate? Certainly not, seeing as you always have the Joliet hard money loan alternative.
A hard money home loan in Joliet provides what is probably most crucial to real estate investors — a quick closing in as few as a few weeks. And additionally, loan amounts can be made up to 70% loan-to-value of the as-is valuation, as established by a qualified appraiser. With the rates starting around 10%, hard money real estate loans might appear, initially, to be higher priced compared to conventional bank loans. But when you consider these loans are not long-term home loans, the interest rate tends to be misleading. Short-term loans of a couple of months to a few years are best looked at as cost of capital, the same as all other expenses associated with a project. And when you've finally flipped the property or home, recouping this expense is comparable to recovering the expense for all the bathroom improvements you did.
In addition, even someone with weak credit can still be eligible for a hard money mortgage. Instead of focusing primarily on the borrower's credit score or wages, Joliet hard money lenders, who can be a privately owned company or an individual person, authorize a loan as a result of evaluating the property value, its marketability, where it is located, and the possibility of getting back their money in case they have to foreclose the loan. Other criteria that have an impact on an individual's approval for a hard money real estate loan include the amount he can put into a down payment, his prior experience being a real estate investor, and price range of similar, fairly recently sold homes in the neighborhood.
Searching for a hard money lender in Joliet to finance your real estate project is not very hard, assuming that the opportunity in front of you is promising and boasts a strong potential for returns. Submit the form or call us and let's discuss your property or properties.
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