Hard Money Loans in Atlanta
There's this outstanding opportunity to renovate and flip this wonderful outdated property or home in a fantastic location and it seems like the deal you have been eagerly waiting on for quite some time. Professional home flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a gain of forty to fifty grand as an average on more than one occassion. Naturally, you also understand that their successes can be credited to the fact that they are industry experts, are knowledgeable in hard money loans, they understand market trends quite well and additionally, they know how to work a public auction for getting a good price. Still, your rehab and remodeling skills aren't bad either — besides, you've already identified the right contractor to tackle the job.
But where do you obtain the needed funding for flipping? A traditional lending institution, like for example a bank, takes a minimum of 1-2 months to authorize the mortgage and release the money. Since most home owners prefer a fast closing, you might have to start seeking out some other funding alternatives.
As well as this, in case you have a less-than-perfect credit rating or do not receive a regular income source, it is usually tougher to qualify for a bank loan, with the tougher loan requirements banks have put in place in recent times. So does that leave you with no other option, but to give up your aspiration to venture into home flipping? Not at all, particularly while Atlanta hard money loans will assist you to realize many amazing things in real estate.
A hard money home loan in Atlanta gives you what is deemed imperative to most real estate sales — a very fast closing of only a couple of weeks and at times even less. What's more, the LTV value can range up to 70% of the property's valuation, as estimated by a certified appraiser. Some people regard hard money real estate loans to be more expensive than customary financing, since the interest rates for such loans commonly start out at 10%. But the lengths of these loans tend to be quite short, making the interest rate much less important. Short-term loans of several months to a few years are best thought of in terms of cost of capital, much like all other expenses related to a project. When you have sold the property and have made a successful return, you can get back this expense from the house — very much like recuperating the money spent on the brand-new appliances for the kitchen that you have installed.
What's more, it is easy to qualify for a hard money mortgage, regardless of whether your credit rating is not that great. Atlanta hard money lenders don't approve a loan strictly based on the person's credit score — rather they also look at the property or home, its location and value, and the property's ability to pay back the loan without the help of the applicant. The total amount that a borrower can put upfront for the home, how much experience he has in real estate investing, and selling price of comparative homes in the vicinity are additional details that go into analyzing an applicant's eligibility for a hard money real estate loan.
Finding a hard money lender in Atlanta to fund your renovation project is not difficult, assuming that the opportunity that lies ahead of you is promising and boasts a good prospect for returns. Submit the contact form or call us to discuss your project.
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