An outstanding bargain on a fix and flip opportunity in an excellent neighborhood all of a sudden shows up — seems so good that it's hard to believe. Everyone knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to generate an average profit margin of forty to fifty thousand dollars when they rehab properties. It goes without saying their past experiences rehabbing, understanding of hard money loans, expertise in their market, and auction talents have played a big part in their success. Nonetheless, your rehab and renovation knowledge isn't that bad either — aside from that, you have already identified the right general contractor to handle the project.

But money is often a different question altogether. A traditional lender, for instance a bank, takes no less than one to two months to consent to the mortgage and provide the cash. Considering that all the sellers are looking for a fast closing, that does not appear to be a wise idea to you in the slightest.

With banks adding harder loan standards in the past several years, it is more difficult for a self-employed individual to find a home loan, particularly if his credit rating is not optimal. So should you admit defeat and forego your ambition to venture into real estate? Never, because you could always use the Palos Hills hard money loan approach to finance your rehab project.

A hard money home loan in Palos Hills offers you what's regarded as essential to many real estate transactions — a fast closing of only a couple of weeks and at many times even less. Plus, the LTV value can go up to 70% of the home value, as estimated by a credentialed appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, seem to be more costly than bank financing. But usually, the interest rate isn't as useful a measure for these loans, simply because they aren't long-term financing. When it comes to short-term loans of a few years or less, you should think of them just like you would other expenses for the project. Once you've sold the home and have made a successful profit, you can reclaim this expense from the property — very much like recovering the cost of brand-new home appliances that you have put in.

Besides, hard money mortgages are not difficult to qualify for, whether or not you have got a bad credit rating. The person's credit score isn't the lone determining factor for Palos Hills hard money lenders — they also analyze the home, its market value, where it is located, and its capacity to return their investment if things do not work out as planned. On top of this, if the borrower can demonstrate prior experience in comparable real estate projects, can put down cash for a down payment, and the value of comparable houses in the neighborhood works to his benefit, he has a good likelihood of qualifying to get a hard money real estate loan.

So should you run into a good and lucrative investment opportunity, rest assured you will have a hard money lender in Palos Hills, in a position to lend you the capital you will need. Submit the contact form on this page or call us and let's discuss your project.