An incredible deal on a fix and flip opportunity located in a very good area of the city shows up out of the blue — sounds too good to be true. Everyone knows that skilled professional flippers, like Tarek and Christina El Moussa who do HGTV's reality home flipping series, Fix or Flop, can make an average profit margin of $40,000 to $50,000 when they rehab properties. And indeed, they are helped in a major way due to their professional experience, auction skills and knowledge of hard money loans. With that being said, you've also been developing your rehab and renovation skills, have got a building contractor lined up and are confident that you will be able to do a great job on this house.

But where do you find the necessary capital for flipping? When you opt for a conventional loan from the bank, you will end up waiting around roughly 30-60 days until eventually the loan is authorized and your money is ready. With all the sellers wanting a fast closing, that doesn't appear like a great idea to you in the slightest.

As well as this, in case you have a less-than-perfect credit situation or don't have a conventional income, it can be tougher to obtain bank financing, with the tougher loan guidelines banks have issued in recent times. So will a shortage of funding keep you from sticking to your aspirations? Certainly not, on the grounds that you can always use the Woodridge hard money loan approach to fund your rehab project.

A hard money home loan in Woodridge offers what's considered vital to most real estate deals — a very fast closing of only a couple of weeks and at times even less. Furthermore, hard money lenders can approve loans up to 70% LTV of the property or home's valuation, as calculated by a professional third-party evaluator. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be costlier than bank lending products. But when you understand these loans are not long-term loans, the interest rate can be misleading. Short-term loans of a couple months to a handful of years are best looked at as cost of capital, similar to every other expenditure in connection with a project. After you renovate and sell off the home, recouping this expense is the same as recouping the cost of the new kitchen appliances you installed in the house.

Moreover, even an individual with bad credit will be able to qualify for a hard money mortgage. Instead of focusing primarily on the borrower's credit score or net income, Woodridge hard money lenders, who could be a private company or an individual person, approve a loan as a result of evaluating the property value, how easy it will be to market, where it is located, and the probability of recouping their capital if they have to foreclose the loan. On top of this, if the individual have proven experience in equivalent real estate projects, can put down money towards a down payment, and the price of comparative properties in the neighborhood works to his benefit, he has got a good likelihood of being eligible for a hard money real estate loan.

Finding a hard money lender in Woodridge to cover expenses for your real estate project is not very hard, provided that the opportunity in front of you is promising and offers a strong potential for returns. Submit the form or call us to talk about the property you have in mind.