Hard Money Loans in Kankakee
Suppose that you've encountered this truly good deal on a fix and flip property located in a terrific location, and you are either a skilled real estate investor or a newbie who hopes to try out flipping homes. Expert house flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to generate a profit of forty to fifty grand on the majority of projects. And indeed, they are aided in a major way via their professional experience, auction expertise and knowledge of hard money loans. Still, your rehab and renovation knowledge isn't bad either — besides, you've already identified a suitable general contractor to tackle the home.
But capital is often a separate issue entirely. In the event you meet with a customary lender, like a bank for a mortgage loan, it can take no less than thirty to sixty days for the approval to be completed and your money to be dispersed. Thus if you are hoping for a fast closing, it is important you recognize that this could set you back by a few weeks, making you miss out on the opportunity.
With banks introducing more challenging loan guidelines in the past several years, it is now more difficult for a self-employed individual to find a mortgage loan, especially if his credit circumstances are not flawless. So should you give up and forego your ambition to embark into real estate? By no means, particularly while Kankakee hard money loans enable you to realize many amazing things in the real estate market.
A hard money home loan in Kankakee boasts what is probably most crucial to real estate investors — a fast closing in as few as 14 days. Aside from that, loan amounts can be made up to 70% loan-to-value of the as-is property's valuation, as determined by a professional appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be higher in price than bank financing. But when you consider these are not long-term home loans, the rate of interest tends to be misleading. When it comes to short-term loans of 1 or 2 years or less, you should think about them identical to any other expenditure for the project. Right after you remodel and unload the property, recouping this expense is no different than recouping the one for home appliances you placed into the property.
Aside from that, hard money mortgages are easy qualifying, even if you have got poor credit. Kankakee hard money lenders don't take on a loan strictly based on the person's credit score — instead they additionally evaluate the home, its location and value, and the property's capability to pay back the financing independent of the applicant. How much of their own money an individual can put upfront towards the house, how much practical experience he has in real estate investing, and price range of equivalent properties in the neighborhood are other details that go into establishing an individual's eligibility for a hard money real estate loan.
So any time you run into an outstanding and lucrative flipping opportunity, rest assured you'll have a hard money lender in Kankakee, in a position to lend you the capital you may need. Complete the form or give us a call to talk about your property.
A loan specialist will be in touch shortly