Cash Out

What is a Hard Money Rehab Loan in Atlanta?

If you’re like many homeowners, you’ve considered getting a hard money rehab loan for your Atlanta home. However, you may not know enough about hard money rehab loans to decide whether or not it’s a good idea.
What is a Hard Money Rehab Loan?
A hard money a rehab loan is cash you borrow from a lender so you can make improvements to a property. In some cases, particularly when you own your property with no encumbrances (you don’t owe any money on it), you may wish to take out an equity loan.

Paces Funding can lend you up to 50 percent of the property’s value if you choose cash out equity lending. However, it’s incredibly important that you have a solid repayment strategy in place before choosing this type of hard money loan.

A hard money rehab loan is not quite the same as cash out equity lending is.

Many investors choose to take out a hard money rehab loan in Atlanta and improve a property, then sell it at its new value.

Projects that require extensive amounts of work are a bit riskier for lenders. That means it may be more difficult to get approval for a rehab loan. However, when traditional lenders are afraid to grant rehab loans, many hard money lenders pick up the slack.
What Hard Money Lenders Consider With Rehab Loans
Because rehab loans are typically risky, hard money lenders typically consider:

How much you paid for the property originally
The upside potential of the property
The extent of the rehab
Your personal financial situation

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

Call us at 404-814-1644 or contact […]

What is a Cash-Out Refinance?

In real estate, equity refers to the dollar amount that the property owner has paid off on their loan. A crafty property owner can refinance their first mortgage into a loan that is more than they currently owe. They are entitled to take out the remaining difference as cash – this is known as cash-out refinancing.
Cash-Out Refinancing and Real Estate Investments
Many house-flippers use cash-out refinancing for multiple purposes:

Purchasing power. Refinancing your mortgage can give you the capital necessary to invest in multiple properties at once.
Home rehab. You can use the cash for home improvements that will ultimately make your property sell for more.

Cash-Out Refinancing and Hard Money
When it comes to cash-out refinancing, many real estate investors choose to borrow money from private money lenders as opposed to banking institutions for the following reasons:

Although hard money loans may have a higher interest rate than a bank loan, they are typically approved at a much faster rate.
Higher rate of approval. Many banks turn down real investment loans simply because it will not generate them enough money. A private money lender, on the other hand, is willing to give a chance to the same people that the banks neglect.

Are You an Investor Who Needs a Hard Money Loan in Atlanta?
If you’re an investor who needs a hard money loan in or around Atlanta, we may be able to help you. Check out our loan criteria to find out whether this type of financing is right for you, and be sure to explore our hard money loan FAQs.

You can apply for a hard money loan online or you can contact us at 404-814-1644.

 

What is a Cash-Out Refinance With Hard Money?

If you’re a real estate investor who wants to take equity from one property and reinvest it by buying another property, a cash-out refinance through a hard money loan may be exactly what you need.
What is a Cash-Out Refinance With Hard Money?
Cash-out refinancing helps you get the equity out of a house that has appreciated in value. Let’s say you purchased a rental property for $100,000 a decade ago. Today, that property has appreciated in value so that it’s worth $125,000. You’d like to get that extra $25,000 to invest in another rental property, but you don’t want to sell the original home – you’re making money from renting it to tenants.

You can use cash-out refinancing to access the $25,000, which you can use to purchase another investment property or for any other purpose.
Why Do People Use Cash-Out Equity Lending with Hard Money?
Hard money loans are typically straightforward, and because you can get the money quickly (in most cases, Atlanta hard money lenders are able to provide you with funds in just a fraction of the time it takes a bank or other lender to come through), hard money loans are often the smartest choice for investors who see a great deal on a new property and need to act quickly.

While your credit does matter to a certain extent when you take out a hard money loan, the value of the property carries quite a bit of weight, as well. Investors who don’t have the credit to work through traditional lenders often find that hard money is the best solution.
Why Choose Paces Funding for Cash-Out Equity Lending?
Paces Funding can lend you up to 50 percent of the property’s value in a cash-out equity loan. […]

What is a Cash-Out Hard Money Loan?

You’ve probably heard the term cash-out refinance before, but what does it really mean – and what does it have to do with hard money lending?
Explaining Cash-Out Hard Money Loans
A cash-out refinance is a mortgage transaction in which the new mortgage amount exceeds the existing mortgage amount. Its purpose is to pull out equity; it’s an alternative to a home equity loan.

It’s a way for borrowers to get money out of the equity in their homes to pay down debt or make additional purchases.
Cash-Out Loans for Investors
If you own a property, either with no loan against it or with a low loan balance, you could be eligible for a cash-out hard money loan. Many people in similar situations use a hard money cash-out loan to reinvest in the real estate market, but that’s not always the case.
What to Ask Yourself to Find Out Whether a Hard Money Cash-Out is Right for You
In order to be sure you’re making the right decision, it’s a good idea to evaluate your situation before you apply for a hard money loan.

Ask yourself:

What’s my “exit” strategy? A hard money loan is a great source of financing, but before you apply for one, it’s a good idea to have a plan for the investment and for repaying the loan.
Is a short-term loan the right answer right now? For the most part, hard money loans last between 6 and 18 months, although the term depends on your circumstances. A hard money loan might not work for your situation, so make sure you evaluate your needs before you apply.
How is my credit? Although hard money loans aren’t considered “traditional” loans, you still need to have a satisfactory credit score in order to […]

Hard Money Loans – Financing for What You Need

When banks don’t want to provide you with the financing you need, an Atlanta hard money lender can step in and make things happen. But what is a hard money loan, and how hard is it to qualify for one? Is it the right solution for you?
Hard Money Real Estate Loans in Atlanta
Whether you’re interested in building a new home, you want to purchase an investment property or you’re ready to borrow cash against a free-and-clear property, a hard money real estate loan might be your best option.

Hard money real estate loans for new construction: Because banks are tough sells on new construction loans, you might need to find an alternative method of financing. A hard money real estate loan provides capital to purchase lots and the cost of construction.

Hard money real estate loans for investment properties: If you don’t have pristine credit, it can be extremely difficult to get a bank to lend you money for an investment property. Often, big institutions don’t see the potential in investment properties – but hard money lenders are willing to take risks that banks can’t.

Cash-out hard money real estate loans: When you own your property free and clear, which means your mortgage is paid off and there are no liens against the property, you may qualify for a cash-out hard money real estate loan. With this type of loan, you can tap into up to 50 percent of your home’s equity.
Qualifying for Hard Money Real Estate Loans
While your credit does matter, it’s not the primary factor that determines whether you’ll qualify. The value of your property, your ability to repay and other factors are all evaluated when you apply for a hard money real estate loan.

The […]

Introducing Paces Funding

Paces Funding is Atlanta’s largest hard money lender. We are leading the way with innovative financing solutions for real estate investors. Our staff has processed over 1,000 loans over the past decade and is excited about the new opportunities we will be providing our clients. Over the next six months, Paces Funding will be introducing new real estate financing and investment opportunities.

Contact us today to get pre-approved for a hard money loan.