Illinois Fix and Flip Loans

We empower entrepreneurs, real estate investors, and businesses of all sizes challenge the status quo. We take risks on the go-getters, and do’ers – who have an opportunity and need a partner.At Delancey Street, we invest in people and their ideas – not abstract concepts like credit scores, or other financial metrics. Tell us about your idea, let’s discuss your opportunity

1

High LTV

We fund hard money loans up to 80-90% LTV with no issues.

2

Fast

We promise to treat you like a partner

3

No $ Limit

No limits on what we can do for you.

Business Funding

Our client was a trucking company based out of NY, that needed quick funding. In 24 hours, we arranged $100,000 in funding.

Raised
APR
ARV
700,000
9,0%
60%
100% Funded!

Residential Refinance

We funded a purchase in California, for $1.2 million with 65% LTV. We helped the developer with with a 11% loan with balloon payment.

Raised
APR
ARV
1,200,000
11%
82%
100% Funded!

Lawsuit Funding

Client was injured in a car accident and needed a cash advance on the future value of his lawsuit. In 48 hours, our funders wired funds over.

Raised
APR
ARV
830,000
8,99%
75%
100% Funded!

PARTNERS FIRST.
LENDERS SECOND.

Hear from people we've helped

Delancey Street makes lending easy. They took a chance on me when no one else would.

Leo kovacz

Founding Partner (Zooomr Car Leasing)
Delancey Street funded our e-commerce shop and really gave us the chance to grow our business significantly.
Delancey Street makes lending easy. They took a chance on me when no one else would and helped my...

Steven Goldman

Founding Partner (Goldman & Associates
Chicago Lawyer)

Industries We Service

Cannabis
Residential Real Estate
Commercial Real Estate
Startups

Our team is always available, and ready to help

Our team of industry experts is ready to help with all of your business needs. Whether you’re looking for a reliable hard money lender, looking to go public via a reverse merger, or need private capital for a venture – we can help.

Industry Experts

Our team consists of extremely qualified industry experts

Quick Service

We work diligently, and quickly, to help you

Our team is always available, and ready to help

Our team of industry experts is ready to help with all of your business needs. Whether you’re looking for a reliable hard money lender, looking to go public via a reverse merger, or need private capital for a venture – we can help.

Industry Experts

Our team consists of extremely qualified industry experts

Quick Service

We work diligently, and quickly, to help you

We’re here to answer your
questions. Contact us anytime:

Minimum Qualifications Requirements

Delancey Street’s team consists of builders, developers, hard money lenders, and entrepreneurs. We understand your project has unique needs, and not every project is going to be easy and be ideal. These are general guidelines which should be interpreted as a suggestion, rather than mandatory.

At the end of the day, we look at you – just as much as the quality of the deal and the qualifications.

  • Risk Free. No Application Fees.
  • Decisions Within 48 Hours.

Hard Money Loan Guidelines

Speed We close within 24-48 hours
Paperwork Not much
Qualification Project and LTV matter. We don’t care about your credit.
Maximum LTV 80-90%
Loan Terms 12-48 Months

It’s Simple

  • 1 Tell us your financial request
  • 2 We consult & provide terms
  • 3 We finalize the transaction

Get pre-qualified

  • Looking to purchase a property
  • No obligation and no effect on y
Get pre-qualified today

Illinois Fix and Flip Loans

Fix, and flips were not popular until a few years ago when the housing market began recovering from the great recession. These loans have continued to grow in popularity, and more people are reaping huge profits out of them. According to figures in the public domain, the return on investment for fix and flips grew from about 20 percent in 2011 to 35 percent in 2015. In 2017, house flippers renovated more than 200,000 homes where they pocketed an average of $68,143 in profits per unit sold.

House flippers continue to benefit immensely from the recovery of the housing market. In some cases, investing in fix and flip could give you returns of more than 12 percent in a year. But despite the massive potential in this business, only a few individuals can afford to invest in it. The biggest hurdle, especially for starters, is accessing low-cost loans for their project.

For starters, fix and flip can cost a lot of money. To begin with, you will need a down payment for the home, renovation costs, and the costs of holding the house until you find a suitable buyer. It, therefore, means that you have to dig into your pocket to meet various costs such as homeowner’s insurance, property taxes, HOA fees, title search fees, recording fees, and escrow fees, and more. Considering the substantial initial cost of venturing into this business, fix and flip loans have provided investors with an easy means of raising capital for their projects.

An overview of fix and flip loans

Fix and flip loans refer to a type of financing used by short-term real estate investors to raise capital for purchasing and renovating a property before selling it for a profit. The money borrowed by house flippers is used to meet various costs such as:

Raising the down payment

The process of house flip begins with finding a suitable property. Once you find the house, you start figuring how to raise funds to buy the house. You will need to raise about 20-45 percent of the purchase price depending on the lender.

The holding cost

These are costs that the house flipper has to pay before they find a suitable buyer of the property. Examples of holding costs include HOA fees, insurance payments, and various other costs of holding the property.

The fix and flip funds will also be used to purchase renovation materials and meet the labor cost for the renovation. Even when you complete the upgrades, you will need money to put your house to the market. You will need to pay realtors helping you to sell the house and even pay for the closing costs.

Where to get financing for the fix and flip projects in Illinois

House flippers in Illinois have a variety of financing options for their projects. Some starters may consider getting a traditional bank loan to finance their fix and flip project. However, experts warn against going to the banks to get a loan to finance a fix and flip project. Here’s why.

Most of the house flippers are short-term real estate investors, and their incomes are usually seasonal. So, most of the banks won’t consider your application for a business loan to finance fix and flip project. Even when the bank agrees to offer you a business loan, their product might be costly and unaffordable. Additionally, most of the bank loans are long term, and house flippers are usually in business for just a few months.

Hard money loans for the fix and flip projects

House flippers usually look out for an alternative considering the many challenges of accessing bank loans. Hard money loan is one of the easiest ways to raise capital for house flippers. Hard money loan refers to short-term funding secured by real estate and used by investors to purchase and renovate a house. Investors use hard money loans to buy, renovate, and sell the houses within a year.

Getting a hard money loan has several advantages. Firstly, the loan can be used to finance a property in poor condition. These loans also have lower qualifications for approval compared to traditional bank loans. What’s more! An investor can access the funds with fifteen days of application. The lenders are not interested so much on borrower’s background but the value of the property.

Hard Money Loans

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