A remarkable deal on a fix and flip opportunity in a good area of the city suddenly shows up — seems too good to be true. Professional residential home flippers, similar to the young married couple on Flip or Flop, HGTV's reality flipping show, are able to earn a profit of $40-$50k on average. Naturally, you also recognize that their success are attributed to the simple fact that they are professionals, are proficient in hard money loans, they understand market trends really well and in addition, they know how to work an auction for getting a good deal. However, you're convinced that your first class rehab and remodeling skills will help you do a quality job on this project — in addition, you've already arranged to have one of the best general contractors in the area to handle the job.

But where can you get the necessary capital for home flipping? If you go after a conventional loan from the bank, you will need to wait approximately 4-8 weeks up until the time the loan is authorized and your funding is accessible. With all the sellers looking for a fast closing, that doesn't appear like a good idea to you at all.

On top of this, banks have been tightening their lending criteria in recent years, making it difficult for someone to get a typical loan if their credit situation is not perfect or he does not possess a regular salaried occupation. So will a shortage of funding prevent you from following your dream? Absolutely not, because you always have the Park Ridge hard money loan option.

A hard money home loan in Park Ridge provides what's perhaps most crucial to real estate investors — a very fast closing in as few as two weeks. Aside from that, financing can be made up to 70% loan-to-value of the as-is property value, as determined by a licensed appraiser. With rates starting off near 10%, hard money real estate loans may seem, at first, to be higher priced when compared with conventional bank financing. But in reality, the lending rate is not as pertinent for these loans, since they will never be long-term financing. Short-term loans of a couple of months to a few years are best approached as cost of capital, very much like every other expenditure in connection with a project. And when you have finally sold the house, recovering this expense is comparable to recovering the expense for the bathroom or other updates you performed.

Furthermore, even a person with bad credit can easily qualify for a hard money mortgage. The applicant's credit score is not the primary deciding factor for Park Ridge hard money lenders — additionally, they consider the home, what is it valued at, its location, and its ability to bring back their investment if everything does not go as planned. Other criteria that have an impact on an individual's approval for a hard money real estate loan can include what amount of money he can put into a down payment, his previous experience as a real estate investor, and price range of comparative, fairly recently sold residences in the area.

Finding a hard money lender in Park Ridge to fund your real estate project is not very challenging, as long as the opportunity in front of you is promising and possesses a good potential for returns. Complete the form on this page or get in touch with us via phone to discuss the property or properties you have in mind.