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Foreclosures in Atlanta

Because Atlanta foreclosures are higher than usual – they’ve been on an upswing since January – that means there’s more opportunity for you, as an investor, to take out a hard money loan and pick up a property that you can flip. The selection is better, and you’ll likely spend less money than you would when properties are few and far between.

Is Foreclosure Investing Right for You?

Investing in foreclosures isn’t for everyone. In fact, many experts recommend that you gain some experience in traditional real estate investing before you dive in headfirst.

Here’s what you need to know:

There are three ways to buying foreclosures: from a property owner before it’s foreclosed (known as a pre-foreclosure), at an auction, or from a lender after the property has been repossessed.
Buying a property that’s owned by the lender may pose less risk to you than buying a foreclosure in the other stages.
You always need to check the title before you buy any foreclosed property; if you don’t, you could be taking an unnecessary risk with your money.

Need a Hard Money Loan to Invest in Atlanta Foreclosures?

Getting a hard money loan in Atlanta may be easier than you think. If you’re ready to invest in a foreclosure and you already know what it entails, give us a call at 404-814-1644 or fill out our easy hard money loan application. We may be able to get you the funding you need to make the investment of a lifetime.

What to Ask Your Hard Money Lender

Whether you’re working with a hard money lender for the first time or you’ve been through all this before, it’s a good idea to do some homework. Here’s what you need to ask:

How long have you been in business?
How big is your company?
What is the interest rate on an Atlanta hard money loan through you?
What are the terms?
How soon will the money be available?

The main purpose of the first two questions can help assure you that you’re working with an honest lender. It’s best if you work with someone who’s been in business for 10 or more years, as well as someone who’s extremely established in the industry. (Paces Funding is the largest hard money lender in Atlanta.)

You may not be very experienced with hard money loans, so it’s very important that you work with someone who is.

The other questions help you determine whether you can afford the loan and how much it will cost you over time, and they’re pretty standard to ask when you take out any loan.

Do You Need a Hard Money Loan?

Call Paces Funding at 404-814-1644 or fill out our easy online application. We’ll be happy to answer your questions and help you get the money you need quickly.

 

What Every Real Estate Investor Needs to Know

How do you make your money work for you when you’re a real estate investor?

This isn’t an easy field, as any investor can tell you, but if you know what you’re doing, as well as where to borrow money for flipping houses in the Atlanta area, it can be a highly lucrative one.
3 Things Every Real Estate Investor Needs to Know
Even if you’re not new to real estate investing, you might be relieved to know that there’s no “one-size-fits-all” solution that works for everyone. However, there are three key things that every investor needs to know.

Know your market. It’s important that you have a target market – but in real estate investing, that’s not the same as it is in a traditional business. What it means in this case is that you need to understand the real estate market in a particular area, including knowing:

What types of homes are available
Property values in the area
How likely you are to need to make significant repairs in that area
Whether buyers will likely be serious about purchasing in the area

Look for sellers constantly. Make sure you’re marketing to motivated sellers. When you know your market, you know what types of sellers to target; from there, you can create a successful marketing plan.
The numbers don’t lie. Make sure that you work within your budget and don’t try to cut corners when it could cost you in the long run. As you’re considering a property, run the numbers immediately – and if they don’t work, walk away. You’ll avoid plenty of headaches by knowing when to say “No.”

Do You Need a Hard Money Loan in Atlanta?
If you’re looking for an Atlanta hard money […]

  • Does Your Credit Score Impact Your Ability to Get a Hard Money Loan - ATL Hard Money
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    Does Your Credit Score Affect Approval for a Hard Money Loan?

Does Your Credit Score Affect Approval for a Hard Money Loan?

Many investors use hard money lenders to help fund real estate investments they plan to sell right away. Hard money lenders offer a substantial advantage over traditional banks because of their ability to fund loans at a faster rate. The approval requirements are far less stringent, and in many cases, credit scores do not affect an investor’s ability to qualify for a hard money loan.
Value of the Subject Property
Most hard money lenders require borrowers to use the subject property as collateral for loan approval. The value of the subject property is more important to lenders than the borrower’s credit score. If a real estate investment makes sense, lenders will look more at the property than credit scores.
Interest Rates and Fees
Although credit scores play a small role in loan approval, hard money lenders do charge higher interest rates and fees for borrowers with less than stellar credit. However, the amount of equity in the subject property is the primary factor for approval, so borrowers with poor credit, including foreclosures and defaults, qualify if they can prove the “after repair value” is worth far more than the purchase price.
Property Plans
Real estate investors with poor credit should outline a detailed plan for the property before applying for hard money loans. The outline must include how borrowers plan to pay off the loan. The information should also include how investors plan to restore the property’s value and how they plan to market the property for immediate sale.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify […]

  • do you want your real estate agent to call you a motivated seller
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    Do You Really Want Your Realtor to Call You a “Motivated Seller”?

Do You Really Want Your Realtor to Call You a “Motivated Seller”?

Buyers see all kinds of language in listing descriptions, and some of it can be pretty confusing. However, the term motivated seller isn’t very confusing. It says that the seller really wants to unload this house—but do you really want your Realtor® to call you a motivated seller, or will it hurt your chances of selling the home at the right price?
Do You Want Your Realtor to Call You a “Motivated Seller”?
When a buyer sees the term motivated seller in a listing description, it could mean that:

You’re willing to negotiate on the price
You want to negotiate
You’re willing to make concessions to a buyer
The house is about to be foreclosed on
The house is falling down and you want out
You want to see any and all offers

While these don’t always apply to so-called motivated sellers, that’s what buyers can think—and if none of those fit your situation, you may not want your Realtor to encourage low-ball offers or get potential buyers to try to negotiate with you.

Your best bet is to talk to your Realtor about the kind of language he or she is going to use in your listing description. If you see something you don’t like, ask your agent to change it before the listing goes live—it really is that simple.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of […]

How Appraisers Compare Your House

When you’re selling a rehabbed house, the buyer’s lender is going to send out an appraiser to see just how much it’s worth. That will tell the lender how much money they can be comfortable giving the buyer—but how does the appraiser arrive at his or her estimated value of the house?
How Appraisers Compare Your House
The appraiser will look at hundreds of factors to value the house you’re selling, from the age of the HVAC system to the quality and condition of the tile in the bathroom.

Once the appraiser has a finger on the house’s pulse, he’ll compare it to recent sales of similar homes to find out what buyers are likely willing to pay in your market.
What Are Comparable Sales?
In order to qualify as a comparable sale, at least for valuation purposes, a house must have:

Sold within the last 3 to 6 months
Be near the subject house (usually within a quarter-mile or half-mile)
Similar square footage
Similar age and construction
Similar quality and condition
Similar lot size

The appraiser will compare your house to several other comparable houses and make a determination on what your house should be worth under the condition it’s in right now.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can […]

Should You Buy a Home Warranty When You Sell Your Flip?

Buyers seem to love a home that comes with a home warranty, so as an investor, should you buy a warranty policy to sweeten the deal?
What is a Home Warranty?
A home warranty is a policy that covers a house’s major systems and appliances when they break down. Although buyers may not need to use it, particularly if you’ve put a lot of work into the house and everything is in perfectly good shape, it can be one of those things that gives people a warm, fuzzy feeling when they’re getting ready to make an offer.
How Does a Home Warranty Work?
If something breaks down in the house, such as the air conditioner or the washer and dryer, the homeowner calls the home warranty company. The home warranty company then sends out a local technician (an expert in the field, whether it’s HVAC or refrigerator repair) and the homeowner pays a flat fee for the call. The home warranty company then covers the costs for parts and labor so all the homeowner forks over out of pocket was the original fee.
How Much Does a Home Warranty Cost?
On average, home warranty plans cost between $400 and $600 for a year of coverage. That means a relatively small investment from you could go a long way to sweeten the deal for buyers.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent […]

3 Common Attic Problems Investors Can’t Afford to Ignore

Before you buy a house to flip that looks like a great deal, make sure you and your home inspector check the attic. There are a handful of serious problems you can discover up there, including truss or rafter damage, old fire damage, or insulation problems.
3 Common Attic Problems
Your inspector should peek in at the attic, and here’s what he or she will be looking for:

Truss or rafter damage. This doesn’t necessarily show up when the inspector is on the roof—but beneath the roof, an inspection can uncover stress cracks that could lead to the loss of the roof’s integrity.
Old fire damage. If a seller doesn’t disclose that the home once caught fire, an inspection in the attic can tip you off. The inspector will check to see if the rafters are painted or don’t have a natural wood appearance, which can both be signs of a previous fire in the house.
Insulation problems. Your inspector will make sure the insulation in the attic is facing the right way and determine its R factor (that’s how insulation is rated) to let you know whether it’s high (the higher it is, the higher its insulating factor).

Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be […]

3 Ways to Improve a Flip’s Value

When you’re flipping a house, you want it to be as valuable as possible—that way, you can make the best profit.

So what do buyers want you to do?
3 Simple Ways to Increase a House’s Value
First things first: You’ll need to work with a Realtor® who can help you price the home properly and sell it quickly. You don’t want to leave the house sitting on the market for too long.

Before you get to that stage, though, here’s what buyers want you to do.

Cut energy costs.

Buyers don’t want to spend a fortune on utility bills, so if you’re including appliances, make sure they’re the green kind. You can go a little farther than that, too, by asking the local energy company to come out and give you a free energy audit; they’ll tell you what you can do to maximize energy efficiency.

Plant some trees—or at least some shrubs.

As landscaping improvements that improve and mature over time, trees and shrubs are a great investment. If you can boost the curb appeal of the property by helping buyers feel more connected with nature, all the better.

Install a water filtration system in the kitchen.

If you’re up for it—and if your market will support it (talk to your Realtor first)—install a water filtration system in the kitchen. It’s a selling point: No more bottled water, and you know exactly where it comes from.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that […]

What is After-Repaired Value?

When you’re taking out a hard money loan in Atlanta or any of the surrounding communities, you need to know that the loan can be based on the after-repaired value, or ARV, of a home. But what is ARV, and how does it affect your loan?
What is After-Repaired Value?
A home’s after-repaired value reflects the property’s value after it’s been fixed up—not its value in its current condition.
How is ARV Calculated?
In order to calculate a house’s ARV, a skilled appraiser will figure out its current value (based on its current condition, as-is). Based on a list of repairs the appraiser notes, experts estimate the home’s value if all the sub-standard conditions are repaired. That’s done by finding comparable properties in the same area, just as any appraiser would do if a home didn’t need to be rehabbed.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes to learn about the hard money loan process.