Hard Money Loans

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 […]

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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 […]

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.

 

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    Should You Hire a Property Manager for Your Investment Property?

Should You Hire a Property Manager for Your Investment Property?

There’s no denying that real estate investing can be profitable (if you’re good at it), but there’s usually a lot of blood, sweat and tears involved. If renting homes is your thing, but you find that you’re just not into unclogging toilets, or don’t have the knack for finding the perfect tenants, should you throw in the towel? If so, you may want to consider hiring a property management company.

If you’ve invested in multiple properties or are just simply making enough money (that’s the goal, right?), hiring a company to take some tasks off your plate may give you some time to look into future investments. So, how do you find the perfect property manager? Here are some questions you can ask them:
Question 1: What are your fees? Do you charge a monthly rate and are there additional fees for things like finding tenants?
Some companies charge a flat monthly fee even if your property is left vacant. Others get paid a percentage of the rent collected.
Question 2: Are you licensed and insured?
You’ll want to make sure the company is licensed and insured in case of legal or liability issues.
Question 3: How do you vet prospective tenants?
Make sure their requirements include background and credit checks, as well as payment histories, so you don’t end up with tenants who don’t pay.
Question 4: What is the best way a tenant can reach you?
Having an accessible property management company is necessary for a healthy relationship with tenants. They’ll need to know they can reach out when issues arise.
Question 5: How can I end our contract?
If you find that your management company is not working out properly, you should be able to move on. Read the contract thoroughly before […]

Commercial vs. Residential Loans

 

The differences between commercial hard money loans and residential hard money loans may seem cut-and-dry, but there are some big differences you need to understand because they’ll impact which type of loan is right for you.
Differences Between Residential and Commercial Hard Money Loans
Residential mortgage loans are intended for properties that have one to four family units. Anything above that, or a property intended solely for business (not a dwelling), falls under a commercial loan.

When you require a residential loan, your personal income, debt and ability to repay a loan are reviewed before you’re approved for a mortgage. If you need a commercial loan, the property itself is evaluated for past income and expenses. This usually requires a few years of historical figures. Your lender will want to see the income that can be generated from the building, compared to what will be owed.

It is important to note that if you’re interested in obtaining a residential loan, and wish to put it under the name of a limited liability company (LLC), you may not be able to. Lenders are under strict guidelines as to which type of loan they’re able to offer an LLC. There may be an opportunity to transfer at a later time, but you would need to consult your attorney or lender.
Do You Need a Commercial or Residential Hard Money Loan 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 […]

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    What is an Environmental Report in Commercial Real Estate (And Do You Need One)?

What is an Environmental Report in Commercial Real Estate (And Do You Need One)?

Many traditional and hard money lenders in Atlanta require an environmental report before they’ll grant someone a commercial loan. The report should show that the property has been examined for environmental contamination. Even if there’s no lender requirement, though it may be a good idea to obtain one anyway, just for your own peace of mind — and for your future buyers’ peace of mind.
What is an Environmental Report?
An environmental report is an investigation on commercial property to discover if there are any dangerous contaminants. Potential buyers assume the cost of the investigation and it is completed in one or two phases.
Phase I Environmental Report
This is the initial investigation to test for dangerous contaminants. Investigators will research past tenants and prior uses of the property to determine suspicion of contaminant use. In addition, they’ll look for evidence of pollution by examining the adjacent land. If there is indication of contamination; phase II will be initiated. The cost for this report is around $3,000.
Phase II Environmental Report
After contamination is suspected, investigators will conduct a more thorough investigation. If necessary, tests such as soil, groundwater and air analysis will take place. The cost for this report can vary depending on the property and the situation.
What Does This Mean for You and a Lender?
If you’ve purchased contaminated commercial property, you will be on the hook for any clean-up costs regardless if you caused the contamination or not. A lender could be on the line in the event of a foreclosure; making this a risky deal. You won’t always be denied a loan; however, it may be a good idea to search for something else.
Do You Need a Hard Money Lender in Atlanta?
If you’re looking for a hard […]

What is Virtual Wholesaling?

Have you heard of virtual wholesaling? If you’re like most people, you probably haven’t. Virtual wholesaling is essentially buying and selling homes or commercial buildings without having to be there. Most of the time, this is done electronically, and the transactions take place without ever seeing the property in person. The home or building is then turned around and sold quickly to an end buyer.
Advantages to Wholesaling Property
Virtual wholesaling has some advantages such as expanding your reach. If the area surrounding your physical location is short on investment properties, you can branch out. You don’t even have to leave your home or office to make a purchase… although it is a good idea to make at least one trip to see it with your own eyes.

With the ability to buy and sell electronically, it may be worth it to have a few people on your team who are close to the property, and can assess the situation. Having connections with real estate agents or contractors can help you succeed in a new territory.
Disadvantages to Wholesaling Property
If you don’t have eyes in the field—it will be tough to estimate the cost of rehab. You’ll just be looking at photos and videos, and won’t have an actual feel for what needs to be done. This can affect your overall sale and it may cost you in the long run.

Because virtual wholesaling is basically selling your contract (the offer you made on the property), you may need to have some transactional funding to cover the time it takes for the end buyer to wrap things up. It is still your property until the deal closes.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a hard […]

REI Resources for Beginners

Not all real estate investors were born into the business. If you’re like most people, you’re probably wondering if you’ll continue this venture after flipping your first home or finding a tenant for your commercial building. Should you decide that real estate investing is your calling, where can you go to learn more?

Most real estate investors didn’t start at the top—they were rookies once, too. In a business where you’re often working alone, how do you find what it takes to be the best?
Network
You’ll learn a lot by networking locally with other real estate investors. It is not uncommon to find networking groups online, packed with people who are looking to meet up and discuss their adventures in real estate. Join a group and be sure to mingle with the seasoned professionals—they’ll be the ones to give you the best tips.
Training & Certificate Programs
There are numerous training and certificate programs online that are geared toward real estate investing. A lot of these programs are self-paced and allow you to learn on your own time. These types of programs and certifications are not a requirement for your profession, but you’ll learn a lot about the industry, as well as the lingo.
Webinars & Podcasts
If you’re not able to enroll in a certificate program, why not watch some webinars online? If you don’t already have a mentor, do a simple web search to learn who the top investors are for your niche. You’ll find that several them offer online webinars or podcasts packed with industry related information. Sign up to listen weekly and learn from the masters of real estate investing.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a hard money loan in […]