If you’re like most people, coming up with money quickly for construction ventures isn’t always easy. There are many ways to try to obtain money… but are they all practical? Here’s why considering a construction hard money loan may be your best bet.
About Construction Loans
When you’re looking at ways to fund a building project, you could try to obtain a loan from a bank or mortgage lender, take the crowdfunding route, or get a construction hard money loan.
Traditional Construction Loans
Traditional construction loans are funded by banks and mortgage lenders—but they may not be as easy to obtain as you think they are.
If the lender approves you based on your credit and other strict criteria, you’ll be able to take advantage of a short-term loan that must be paid off by another mortgage loan. Keep in mind, though, that you’ll be paying a high interest rate during the construction phase. The loan approval process can be very lengthy, and most conventional lenders require a lot of detailed information (and a hefty down payment).
Crowdfunded Construction Loans
Crowdfunding for real estate investments is becoming more popular. These are a good source of funding if you’ve been denied by banks; however, most serious individual investors need proof that they’ll see a return on their investment—and that you’re not a huge risk.
Hard Money Construction Loans
Construction hard money loans also require a down payment, and you’ll face some high interest rates, but your chances of getting funded are significantly higher. Hard money lenders typically don’t require all the information the banks do, and the process is usually faster.
Construction Hard Money Loans in Atlanta
If you’re looking for a hard money loan in Atlanta, we may be able to help you.
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