An incredible buy on a fix and flip property in an excellent area of the city shows up out of the blue — seems too good to be true. Expert property flippers, like the young married couple on Flip or Flop, HGTV's reality flipping show, are able to haul in a profit of $40-$50k for most homes. And yes, they are helped in a big way as a result of their professional knowledge, auction abilities and knowledge of hard money loans. Nonetheless, your rehab and renovation skills aren't bad either — aside from that, you have already identified a good building contractor to handle this home.

But where precisely do real estate investors get funding? A standard lending institution, say for example a bank, takes at a minimum 1 to 2 months to consent to the financing and hand over the money. Considering that all the home owners are wanting to find a fast closing, that doesn't appear like a good option to you at all.

What's more, if you have a sub-optimal credit situation or do not have a routine income source, it can be more difficult for you to be eligible for bank financing, with the stricter loan criteria banks have introduced of late. So does this leave you with no other option, but to abandon your ambition of getting into rehabbing? Under no circumstances, especially while Lincoln Park hard money loans enable you to accomplish great things in the real estate market.

A hard money home loan in Lincoln Park boasts what is probably most crucial to real estate investors — a very fast closing time of as few as fourteen days. Additionally, loan amounts are made up to 70% loan-to-value of the as-is house's valuation, as established by a licensed appraiser. A number of people consider hard money real estate loans to be higher in price than standard loans, considering interest rates for such loans commonly start out at 10%. But when you understand these loans are not long-term mortgage loans, the rate can be misleading. The price tag on such short-term loans should be considered much like every other expenditure that you would have to meet pertaining to the project. When you have resold the home and have made a successful profit, you'll be able to recoup this expense from the property — just like recuperating the money necessary for the brand-new home appliances that you installed.

Furthermore, even an individual with low credit can easily qualify for a hard money mortgage. Lincoln Park hard money lenders don't approve a loan solely on the basis of the borrower's credit score — instead they will analyze the property, its location and value, and the property's ability to pay back the financing independent of the borrower. Adding to that, if the borrower can demonstrate prior experience in similar real estate ventures, can put down money towards the down payment, and the cost of equivalent houses in the area works to his benefit, he has got a very good shot of being approved for a hard money real estate loan.

So any time you come across a very good and lucrative investment opportunity, feel comfortable knowing you'll have a hard money lender in Lincoln Park, in a position to loan you the money that you need. Submit the contact form on this page or call us and let's discuss your property or properties.