There's this phenomenal opportunity to renovate and flip this nice outdated condo in a good area and it looks a lot like the one you've been anticipating for a long time. You may have heard that veteran house flippers, like the husband and wife on HGTV's Flip or Flop, have a remarkable average profit near forty to fifty thousand dollars. Naturally, you also know that their results are credited to the fact that they are professionals, are well versed in hard money loans, they know market trends quite well and in addition, they are good at working an auction for getting a good deal. However, you are assured that your first class rehab and remodeling knowledge can help you do an outstanding job for this property — additionally, you already have lined up one of the best general contractors in town to work on this project.

But funding is a different issue entirely. In the event you approach a common lending institution, much like a bank for a loan, it's more than likely going to take at least four to eight weeks for your approval to come through and the funds to be given out. Since most home owners favor a fast closing, you might want to begin seeking out some other financing options.

On top of this, banks have been tightening up their lending standards as of late, which makes it challenging for someone to receive a regular home loan if their credit score is not flawless or he is lacking a consistent salaried job. So does that mean you are without an option, but to drop your dream of venturing into the fix and flip business? Certainly not, due to the fact you can always go the Palos Heights hard money loan route to pay for your rehab project.

A hard money home loan in Palos Heights gives you what's viewed as vital to most real estate sales — a very fast closing of only a couple of weeks and more often than not even less. Furthermore, hard money lenders are able to do funding up to 70% LTV of the property or home's valuation, as established by a professional third-party appraiser. Some people consider hard money real estate loans to be more costly than regular financing, because the lending rates for these loans normally start at 10%. But once you consider these loans are not long-term mortgage loans, the rate of interest can be misleading. Short-term loans of several months to a handful of years are best thought of in terms of cost of capital, the same as all other costs involved with a project. Once you've resold the property or home and have made a successful financial gain, you'll be able to recover this expense from the property — the same as recuperating the cost of brand-new kitchen appliances that you put in.

In addition, even an individual with poor credit can easily be eligible for a hard money mortgage. Instead of focusing only on the borrower's credit score or net income, Palos Heights hard money lenders, who could be a privately owned company or an individual, approve a loan as a result of assessing the home value, its marketability, where it is located, and the likelihood of recouping their money in case they have to foreclose the loan. The amount that a person can put down in advance towards the property, his past real estate experience, and price range of comparative properties in the neighborhood are other details that go into establishing an individual's suitability for a hard money real estate loan.

So if you have stumbled on a really good fixer-upper with a high prospect of returns, you have also discovered a hard money lender in Palos Heights who is ready to finance your flipping project. Submit the form or call us to discuss your property.