Suppose that you've run across this truly good deal on a fix and flip property you found in a great location, and you are either an experienced real estate investor or a newbie who really wants to try his hand at flipping. You've heard that veteran property flippers, similar to the husband and wife on HGTV's Flip or Flop, turn a remarkable average profit margin close to $40,000 – $50,000. Naturally, you also are aware that their successes are credited to the fact that they're professionals, are well versed in hard money loans, they know the marketplace quite well and additionally, they are good at working a public auction to purchase their homes at a good deal. Nonetheless, your rehab and remodeling skills aren't bad either — besides, you've already located an ideal contractor to take on the home.

But money is a separate question altogether. For those who meet with a common lender, like a bank for a mortgage loan, it can take no less than four to eight weeks for the approval to come through and the money to be distributed. With the sellers wanting a fast closing, that does not appear to be a wise idea to you at all.

With banks establishing harder loan criteria in the past few years, it is much harder for a self-employed individual to obtain a home loan, especially if his credit circumstances are not flawless. So will a lack of funding stop you from pursuing your ambitions? Certainly not, because you always have the Lombard hard money loan alternative.

A hard money home loan in Lombard provides what's regarded as vital to most real estate deals — a very fast closing of just a few weeks and at many times even less. Plus, the LTV value can reach up to 70% of the place's valuation, as determined by a credentialed appraiser. With the loan rates starting at about 10%, hard money real estate loans may seem, at first glance, to be more expensive in comparison with traditional bank loans. But the time frames of these loans tend to be quite shorter, which makes the rate much less significant. Short-term loans of several months to a handful of years are best looked at as cost of capital, the same as any other expenditure associated with a project. And as soon as you have turned the house, recouping this expense is identical to recuperating the expense for the kitchen and bath updates you performed.

Aside from that, hard money mortgages are easy qualifying, even when you have a bad credit rating. The customer's credit score isn't the primary determining factor for Lombard hard money lenders — they also analyze the house, its market value, where it is located, and its ability to earn back their investment if things should not go as planned. How much money an individual can put down in advance for the house, how much practical experience he has in real estate investments, and selling price of equivalent homes in the area are various other factors that go into determining an applicant's qualification for a hard money real estate loan.

If you happen to have stumbled upon a really great real estate opportunity with a high chance of returns, you've also found yourself a hard money lender in Lombard who is willing to provide funding for your fix and flip project. Fill out the form or get in touch with us via phone and let's discuss the property you have in mind.