Hard Money Loans in Atlanta
Suppose that you've encountered this truly good bargain on a fix and flip property in a terrific location, and you are either an experienced real estate investor or a first-timer who really wants to try out flipping homes. Most folks know that skilled professional flippers, such as Tarek and Christina El Moussa who do HGTV's reality home flipping show, Fix or Flop, can turn a typical profit margin of forty to fifty thousand dollars on their flips. And without a doubt, they are aided in a big way due to their professional experience, auction abilities and understanding of hard money loans. With that being said, you've also been cultivating your rehab and remodeling knowledge, have a licensed contractor lined up and are positive that you can do a great job on this property.
But how exactly do real estate investors obtain funds? When you approach a regular lender, like a bank for financing, it's likely going to take, at the very least, thirty to sixty days for the acceptance to come through and the money to be distributed. Due to the fact all the home owners want a fast closing, that does not appear to be a good option to you in the slightest.
With banks bringing in more challenging loan requirements in the past several years, it's become more challenging for a self-employed person to obtain a mortgage loan, especially when his credit rating is not flawless. So will inadequate financing stop you from sticking to your dream? Absolutely not, seeing as you always have the Atlanta hard money loan option.
When you put in an application for a hard money home loan in Atlanta, you will get what's possibly most important to real estate negotiations across the country — a quick closing of around 2 weeks. Furthermore, hard money lenders can approve funding up to 70% LTV of the property or home value, as calculated by a professional third-party appraiser. With the lending rates starting off at about 10%, hard money real estate loans may look, initially, to be higher priced as compared with conventional bank lending products. But the time frames of these loans are comparatively short, which makes the rate less significant. The cost of such short-term loans should be viewed on par with every other cost that you will encounter during the project. And when you have turned the home, recovering this expense is the exact same as recouping the expense for all the bathroom or other improvements you did.
Moreover, even someone with bad credit can easily qualify for a hard money mortgage. The person's credit score is not the sole determining factor for Atlanta hard money lenders — in addition, they analyze the piece of real estate, how much it is worth, where it is located, and its potential to return their financial commitment if things should not work out as intended. Additional criteria that have an impact on a borrower's acceptance for a hard money real estate loan include how much money he can put towards a down payment, his previous experience being a real estate investor, and price of comparable, fairly recently sold properties in the neighborhood.
So if you have found a really great real estate opportunity with a huge potential for returns, you've also found yourself a hard money lender in Atlanta who's willing to fund your rehab project. Submit the form on this page or call us to discuss your project.
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