Suppose that you've run across this truly good deal for a fix and flip property in an ideal neighborhood, and you are either a seasoned real estate investor or a newbie who is looking to try out flipping houses. Everybody knows that skilled professional flippers, along the lines of Tarek and Christina El Moussa who do HGTV's reality home flipping program, Fix or Flop, can readily generate a typical profit margin of forty to fifty thousand dollars when they flip properties. No need to explain that their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction skills have played an important part in their successes. With that being said, you have likewise been cultivating your rehab and remodeling skills, have a very good licensed contractor ready to go and are confident that you can do a stellar job for this property.

But how can you obtain the necessary financing for flipping? If you get in touch with a standard lender, like a bank for a mortgage loan, it is in all likelihood going to take, at a minimum, four to eight weeks for the acceptance to be completed and the money to be dispersed. Considering that the home owners want a fast closing, that does not seem like a good option to you at all.

On top of this, banks have already been tightening up their lending criteria in recent times, which makes it challenging for someone to obtain an ordinary home loan if their credit score is not flawless or he is lacking a regular salaried occupation. So does that mean you have no option, but to give up your ambition of venturing into rehabbing? Most certainly not, because you always have the Winthrop Harbor hard money loan option.

A hard money home loan in Winthrop Harbor gives you what is regarded as crucial to most real estate deals — a quick closing of just a 2-3 weeks and oftentimes even less. Also, hard money lenders will often consent to lending up to 70% LTV of the home value, as estimated by a credentialed third-party appraiser. At first glance, hard money real estate loans, with starting interest rates of 10%, could be seen as more costly than bank lending options. But in reality, the lending rate isn't as useful a measure for these loans, since they aren't long-term financing. Short-term loans of a couple of months to a few years are best approached in terms of cost of capital, very much like every other financial outlay in connection with a project. Once you've sold the house and have made a positive profit, you'll be able to recover this expense from the house — very much like recovering the cost of brand-new kitchen appliances that you have put in.

In addition, even an individual with low credit can still be eligible for a hard money mortgage. The person's credit score is not the single determining factor for Winthrop Harbor hard money lenders — additionally, they analyze the piece of real estate, what is it valued at, where it is located, and its capacity to return their investment if things should not go as planned. Several other criteria that influence a customer's eligibility for a hard money real estate loan can include what amount of money he is in a position to put into a down payment, his past experience being a real estate investor, and price range of comparable, fairly recently sold residences in the area.

So in the event you run into a good and profitable investment opportunity, relax knowing you will have a hard money lender in Winthrop Harbor, ready to lend you the capital you need. Complete the form on this page or give us a call and let's discuss the property you have in mind.