An outstanding bargain on a fix and flip opportunity in a good subdivision all of a sudden shows up — sounds too good to be true. You've probably heard that competent house flippers, much like the husband and wife on HGTV's Flip or Flop, have a remarkable average profit close to $40,000 – $50,000. Of course, you also understand that their success can be attributed to the simple fact that they are industry experts, are well versed in hard money loans, they know market trends quite well and in addition, they are good at working a public auction to buy their properties at a reasonable deal. Nevertheless, you are assured that your superb rehab and renovation abilities will assist you to do a great job for this house — in addition, you already have lined up one of the finest general contractors in the business to handle this job.

But where can you find the necessary funding for flipping? Should you meet with a standard lending institution, much like a bank for funding, it's very likely going to take, as a minimum, 30-60 days for your acceptance to be completed and the funds to be furnished. Since the majority of home owners would rather have a fast closing, it may be best to start looking for other financing alternatives.

With banks introducing harder loan requirements in recent years, it has become more challenging for a self-employed person to find a mortgage loan, particularly if his credit score is not flawless. So does that mean you have no option, but to give up your aspiration to venture into flipping? Under no circumstances, especially when Wheaton hard money loans can help you realize great things in real estate.

A hard money home loan in Wheaton boasts what is perhaps most important to real estate investors — a fast closing time of as little as 2 weeks. Besides that, hard money lenders will often consent to lending up to 70% LTV of the home value, as determined by a qualified third-party appraiser. At first, hard money real estate loans, with starting lending rates of 10%, seem to be higher in price than bank lending options. But usually, the rate of interest is not as relevant for these loans, because they are not long-term loans. Short-term loans of several months to a few years are best approached in terms of cost of capital, very much like any other expense associated with a project. And as soon as you have turned the property or home, recouping this expense is the exact same as recovering the expense for the kitchen and bath upgrades you did.

Furthermore, even an individual with low credit can easily qualify for a hard money mortgage. As an alternative for focusing strictly on the applicant's credit score or source of income, Wheaton hard money lenders, who could be a private company or an individual, approve a loan as a result of evaluating the home value, how easy it will be to market, its location, and the odds of recuperating their money should they have to foreclose the loan. The total amount that a person can put upfront for the property or home, how much practical experience he has in real estate investments, and price range of comparative properties in the same vicinity are various other factors that go into establishing a borrower's suitability for a hard money real estate loan.

So in case you have stumbled upon a really great home to flip with a high probability of returns, you've also discovered a hard money lender in Wheaton who's ready to provide financing for your rehab projects. Fill out the contact form or call us and let's discuss the project you have in mind.