A fantastic buy on a fix and flip opportunity located in a good neighborhood shows up out of the blue — sounds too good to be true. Professional property flippers, like the young couple on Flip or Flop, HGTV's reality flipping show, are able to earn a profit of forty to fifty grand on a regular basis. And sure, they are aided in a big way due to their professional know-how, auction abilities and understanding of hard money loans. That said, you have likewise been brushing up your rehab and remodeling skills, have a very good general contractor ready to go and are positive that you can do an impressive job for this house.

But how exactly can real estate investors get funding? For those who get in touch with a standard lender, like a bank for a loan, it's in all likelihood going to take, as a minimum, 4-8 weeks for the approval to come through and your money to be dispersed. Since the majority of home owners would prefer a fast closing, it may be best to start searching for additional financing options.

With banks establishing more challenging loan standards in the past few years, it is now harder for a self-employed person to obtain a home loan, especially when his credit situation is not flawless. So does this leave you with no other option, but to drop your dream to venture into home flipping? By no means, especially when Long Grove hard money loans can help you achieve many amazing things in the real estate world.

If you should apply for a hard money home loan in Long Grove, you have access to what is perhaps most important to real estate offers across the country — a quick closing of about 2 weeks. Further, loan amounts are made up to 70% loan-to-value of the as-is home value, as calculated by a professional appraiser. On the surface, hard money real estate loans, with starting interest rates of 10%, appear to be more expensive than bank lending products. But the lengths of these loans tend to be relatively short, which makes the rate much less important. The cost of such short-term loans ought to be considered much like any other expenditure that you would have to meet pertaining to the project. When you have turned the house and have made a successful return, you'll be able to recoup this expense from the property or home — similar to recouping the money spent on the brand-new kitchen appliances that you've put in.

Apart from this, hard money mortgages are easy qualifying, even if you have a weak credit score. Instead of focusing entirely on the person's credit score or income, Long Grove hard money lenders, who could be a privately owned company or an individual, authorize a loan after evaluating the property value, its marketability, its location, and the probability of recouping their capital if they have to foreclose the loan. Other criteria that impact an individual's eligibility for a hard money real estate loan include how much he can put towards a down payment, his former experience being a real estate investor, and price of comparable, fairly recently sold homes in the neighborhood.

Finding a hard money lender in Long Grove to finance your renovation project is not very challenging, provided that the opportunity that lies before you is promising and offers a good potential for returns. Submit the contact form on this page or get in touch with us via phone to talk about your property.