Suppose you've run into this excellent deal on a fix and flip property you found in a great neighborhood, and you're either an experienced real estate investor or a first-timer who wants to try his hand at flipping. Expert house flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of generating a gain of $40-$50k on average. It goes without saying their past experiences rehabbing, understanding of hard money loans, expertise in their housing market, and auction skills have had a significant role in their successes. Nonetheless, your rehab and renovation skills aren't bad either — in any case, you've already located a suitable licensed contractor to handle this job.

But capital is usually a separate question altogether. If you get in touch with a standard lender, much like a bank for a loan, it in all likelihood will take a minimum of 4-8 weeks for your acceptance to come through and your money to be furnished. Since the majority of sellers prefer a fast closing, you may want to begin seeking out other funding options.

With banks bringing in more challenging loan requirements in recent times, it's become tougher for a self-employed person to find a home loan, especially when his credit score is not flawless. So will a shortage of financing prevent you from sticking with your aspirations? Definitely not, because you also have the Lake Barrington hard money loan option.

A hard money home loan in Lake Barrington can provide what is considered crucial to many real estate sales — a quick closing of only a 2-3 weeks and sometimes even less. Furthermore, hard money lenders are able to do lending up to 70% LTV of the home value, as estimated by a certified third-party evaluation. At first, hard money real estate loans, with starting interest rates of 10%, appear to be higher priced than bank financing. But in reality, the rate of interest is not as useful a measure for these loans, given that they are not long-term loans. When it comes to short-term loans of a handful of years or less, you should look at them just like you would other expenditures for the project. And as soon as you have flipped the home, recuperating this expense is the exact same as recouping the expense for the bathroom upgrades you did.

Moreover, even an individual with weak credit can easily be eligible for a hard money mortgage. Lake Barrington hard money lenders do not authorize a loan solely on the basis of the person's credit score — instead they also analyze the home, where it is located and what it is worth, and the property's capacity to pay back the financing without the assistance of the borrower. On top of that, if the applicant can demonstrate past experience in equivalent real estate ventures, can put down cash towards the down payment, and the cost of equivalent properties in the vicinity works to his benefit, he will have a very good likelihood of being approved to obtain a hard money real estate loan.

So if you have found a really good home to flip with a high prospect of returns, you have also discovered a hard money lender in Lake Barrington that is happy to provide financing for your rehab venture. Fill out the form on this page or get in touch with us via phone and let's talk about the property or properties you have in mind.