A fantastic deal on a fix and flip opportunity located in an excellent area of the city suddenly turns up — sounds too good to be true. Many people know that capable professional flippers, like Tarek and Christina El Moussa from HGTV's reality flipping series, Fix or Flop, can generate a typical profit margin of forty to fifty thousand dollars when they flip properties. Naturally, you also are aware that their results are credited to the simple fact that they're industry experts, are well versed in hard money loans, they understand the marketplace really well and furthermore, they know how to work a public auction for getting a good deal. With that being said, you've also been brushing up your rehab and remodeling skills, have a very good building contractor lined up and are certain that you will be able to do a stellar job on this property.

But how do real estate investors obtain funds? For those who meet with a standard lending institution, much like a bank for financing, it can take a minimum of thirty to sixty days for your acceptance to come through and the funds to be sent out. Since the majority of sellers wish to have a fast closing, it may be best to begin searching for additional funding options.

On top of this, banks have been tightening up their lending criteria as of late, rendering it more hard for someone to obtain a typical loan if their credit score is not flawless or he doesn't have a regular salaried job. So does that leave you with no other option, but to abandon your aspiration to venture into the fix and flip business? Under no circumstances, especially when North Chicago hard money loans enable you to achieve great things in the real estate market.

A hard money home loan in North Chicago boasts what is possibly most important to real estate investors — a very fast closing time period of as few as a few weeks. What's more, the LTV value can go up to 70% of the home value, as determined by a competent appraiser. A number of people consider hard money real estate loans to be costlier than standard financing, since the lending rates for these loans typically start off at 10%. But once you understand these are not long-term mortgage loans, the rate of interest may be misleading. Short-term loans of several months to a few years are best understood in terms of cost of capital, the same as all other expenditures related to a project. And when you've flipped the property or home, recouping this expense is the exact same as recovering the expense for the kitchen and bath upgrades you performed.

Furthermore, even individuals with bad credit will be able to qualify for a hard money mortgage. The applicant's credit score will not be the sole determining factor for North Chicago hard money lenders — in addition, they consider the property, its market valuation, its location, and its potential to earn back their investment if things should not go as intended. How much money a borrower can put down beforehand for the home, how much practical experience he has in real estate investments, and price range of comparable properties in the neighborhood are additional factors that go into analyzing an applicant's qualification for a hard money real estate loan.

So any time you run into a very good and worthwhile investment opportunity, be assured you'll have a hard money lender in North Chicago, equipped to lend you the funds you'll need. Submit the form on this page or get in touch with us via phone to discuss the property you have in mind.