There is this amazing opportunity to rehab and flip this wonderful out of date property in a very good part of town and it looks like the one you've been wanting for quite a while. Expert house flippers, similar to the young couple on Flip or Flop, HGTV's reality flipping series, are able to haul in a gain of $40-$50k on average. And indeed, they are aided in a big way due to their professional knowledge, auction expertise and understanding of hard money loans. Still, your rehab and renovation skills aren't bad either — besides, you have already found a good licensed contractor to take on the job.

But funding can be a separate question entirely. Should you meet with a regular lender, such as a bank for a mortgage loan, it can take, at the very least, 4-8 weeks for your approval to be completed and your funds to be dispersed. Due to the fact the home owners are seeking a fast closing, that doesn't appear to be a good option to you whatsoever.

With banks establishing tougher loan guidelines in the past several years, it has become tougher for a self-employed individual to obtain a mortgage loan, especially when his credit score is not perfect. So do you have to give up and abandon your dream to embark into fix and flips? Absolutely not, seeing as you also have the Mokena hard money loan alternative.

A hard money home loan in Mokena provides what is probably most important to real estate investors — a fast closing time of as little as fourteen days. Aside from that, loans can be done for up to 70% loan-to-value of the "as is" house's valuation, as established by a licensed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be costlier than bank lending options. But if you consider these are not long-term home loans, the rate of interest can be misleading. Short-term loans of several months to a few years are best approached as cost of capital, similar to every other financial outlay associated with a project. When you have turned the property or home and have made a positive gain, you'll be able to reclaim this expense from the home — just like recouping the cost of brand-new appliances for the kitchen that you have put in.

Apart from this, hard money mortgages are easy qualifying, even in the event you posses very bad credit. Mokena hard money lenders don't approve a loan strictly judging by the customer's credit score — instead they will look at the property, its value and location, and the property's capability to pay back the financing by itself. Several other criteria that impact an applicant's approval for a hard money real estate loan can include how much money he is able to put towards a down payment, his past experience being a real estate investor, and selling price of similar, recently sold homes in the neighborhood.

Locating a hard money lender in Mokena to fund your fix and flip endeavor is not very hard, provided that the opportunity that lies before you is promising and offers a good prospect for returns. Submit the contact form or get in touch with us via phone to discuss the property you have in mind.