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  • 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 […]

How Do Hard Money Lenders Work?

Hard money lenders take a different route when lending than traditional lenders do – and that can be very beneficial to real estate investors.
How Do Hard Money Lenders Work?
Hard money lenders typically lend based on collateral, so they’re less inclined to worry about the lender’s ability to repay the loan than a conventional lender would be. The value of the collateral often outweighs the borrower’s financial position.

Conventional lenders show extreme interest in credit scores and income, whereas those things aren’t as important when you’re taking out a hard money loan (they’re still important, but they’re not always “deal-breakers”). A solid borrowing history and proof of an ability to repay the loan can be enough to give you the green light. For many people, the traditional loan process can be slow (even with ample income and favorable credit scores). A negative item on a credit report can delay, or even prevent, the borrower from getting approved.

The borrower can expect a hard money loan to be short-term; the maximum term is usually around 5 years. Interest rates for hard money loans may also be a little higher than traditional loans. However, hard money loans do come with benefits.

Speed of Lending – Borrowers can expect the lenders to close quicker. Hard money lenders can close deals that other lenders cannot.
Flexibility – Borrowers are not subject to a traditional underwriting process. Hard money lenders evaluate each deal separately.
Loan Approval – For hard money lenders, one of the most important factors is the borrower’s collateral. The lender can lend as much money as the collateral is worth.

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

  • 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.

 

Should You Replace Vinyl Siding on an Investment Property?

First things first: If you replace the vinyl siding on your investment property, the national average of return on investment is about 80 percent (give or take a few points).

However, that investment may be a good one—especially if you consider the boost in curb appeal.
Should You Replace Vinyl Siding on an Investment Property?
The job averages less than $11,000 across the nation, which means it’s relatively cost-effective (but that’s also a pretty large chunk of change). New vinyl siding will make the house look brand-new on the outside, but if you’re not making significant improvements to the inside (or if the inside doesn’t already look next-to-new), that may be a wasted effort.
The Deal With Vinyl Siding
Vinyl siding typically lasts about 25 years. Contrast that with house paint; houses need their exteriors repainted every five to seven years, which means buyers are more likely to want a house with low-maintenance vinyl siding.

Long-lasting, low-maintenance convenience is what new buyers want, so new siding may be a worthwhile investment for you to make.
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.

How to Budget for Your Next Investment Property

 

As a professional real estate investor, you know how easy it is for your ambitions to exceed your budget. Here is a step-by-step strategy to ensure that your next project remains in the red.
Know Your Limits
Before you begin any real estate venture, you have to know how much money you have available to work with. You would be amazed at the number of people who begin searching for loans without figuring out how much they are worth in the first place. Contact a professional financial advisor if you aren’t sure of your overall worth; you’ll need an exact number before you can continue!
Is the Property Sustainable?
You are going to have to sit on the property until you find a buyer. Calculate how many months you can comfortably incur the extra costs before it starts to become a major burden on the rest of your projects, and don’t forget to factor in overlooked expenses such as inspections and even natural disasters (better safe than sorry). For a better idea of how long you can expect to be on the market, research how long it took similar properties in the neighborhood to sell – in general, quicker is better!
Self-Savings
Any contracting job that you can do yourself will obviously save money. However, the more specialized the job, the more likely you are to have trouble. In the long-run, hiring a professional may save you more money than attempting a project yourself, especially since a botched operation will require professional assistance anyway.
Plan the Right Type of Loan
Time is money! There’s nothing worse than having to halt a project because a much-needed bank loan is still pending approval. Hard money lenders can get you the financial assistance you need […]