A fantastic deal on a fix and flip property in a very good neighborhood suddenly turns up — sounds so good that it's difficult to believe. Many people know that knowledgeable professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, can earn a typical profit of $40,000 to $50,000 on their home projects. No need to explain that their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction talents have had a significant part in their successes. Still, your rehab and renovation skills aren't bad either — besides, you've already identified a suitable general contractor to tackle this job.

But where can you obtain the needed funding for home flipping? In the event you go after a traditional bank loan, you will have to wait around roughly 4-8 weeks until the financing is approved and the funds are ready to go. Because most home owners wish to have a fast closing, you might have to start seeking out additional financing options.

To add to it, banks have already been tightening up their lending standards in recent years, making it difficult for a person to obtain a regular home loan if their credit circumstances are not flawless or he does not have a regular salaried profession. So will a shortage of funds stop you from sticking to your dream? Definitely not, seeing as you always have the Melrose Park hard money loan option.

If you decide to apply for a hard money home loan in Melrose Park, you'll get what's probably most essential to real estate offers across the country — a very fast closing of about a couple weeks. Besides that, hard money lenders frequently agree to lending up to 70% LTV of the property's valuation, as calculated by a qualified third-party appraiser. With the rates starting off at about 10%, hard money real estate loans may look, at first, to be higher priced in comparison with conventional bank lending products. But once you appreciate that these loans are not long-term mortgage loans, the rate of interest can be misleading. Short-term loans of a couple of months to a few years are best thought of in terms of cost of capital, much like all other expenses associated with a project. And when you've finally flipped the house, recouping this expense is comparable to recovering the expense for all the kitchen and bath upgrades you did.

Also, it is easy to be eligible for a hard money mortgage, even if your credit situation is not that superb. Melrose Park hard money lenders do not authorize a loan solely according to the applicant's credit score — instead they additionally analyze the property, its value and location, and the home's capability to pay back the financing by itself. Adding to that, if the person can demonstrate past experience in equivalent real estate projects, can put down cash towards a down payment, and the value of comparative homes in the area works in his favor, he has an excellent chance of qualifying to obtain a hard money real estate loan.

So in case you have stumbled upon an excellent real estate opportunity with a high potential for returns, you have also stumbled upon a hard money lender in Melrose Park who's willing to fund your fix and flip projects. Complete the contact form on this page or give us a call to discuss your property or properties.