Hard Money

Who Can Apply for a Hard Money Loan?


When setting out to buy a piece of property, whether commercial or residential, one of the most important steps in the process is to acquire a loan. While there are many different types of loans to choose from, a hard money loan is one that has several distinct advantages and that therefore is worth considering. This is particularly true for individuals who are interested in acquiring their loan money quickly or those who do not have a good enough credit score to secure a traditional loan.

In a hard money loan, credit score is not as big a factor as it is with a conventional loan. That’s because the lender uses collateral, not credit, against the loan. In most cases, the collateral is simply the piece of property that the borrower is seeking to obtain. Typically, the lender will loan somewhere between sixty to seventy percent of the value of the property, and the borrower is responsible for supplying the other thirty to forty percent as a down payment on his or her purchase. In cases where the buyer does not have this amount of cash to make a down payment, the lender will place a lien on another property owned by the borrower as an additional form of collateral.

Hard money loans are also commonly used when the individuals purchasing a piece of property are doing so with the intention of flipping it. In these cases, having quick access to cash allows the buyer to get started on their work of flipping more quickly, and thus cuts back on the amount of time they invest in the property. In a world where time is money, taking on the higher interest rate involved in a hard […]

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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 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 […]

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!
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 […]

3 Ways to Sabotage Your Sale


Investing in real estate often means purchasing and renovating distressed houses. When it comes to selling the home, it may seem that the hard work is over. While that’s mostly true, making mistakes at this stage can mean not getting the most out of the effort you’ve put in thus far. It can be easy to make these mistakes; and they can cost you.
Overpricing for the Market
Investing in real estate can be a stressful ordeal. Obviously, you want work and money you’ve poured into a property to pay off, and pay off big. However, it can be easy to assign too high a price to a home you’ve spent so much effort to renovate. Be sure to have a current comparative market analysis for the home, and base your list price on the hard numbers within it.
Ignoring Curb Appeal
Rejuvenating a distressed home can take its toll on the property. You may need to address damage to fences, lawns and landscaping as the final step in your renovation before you list the property. Also, pay attention to outdoor features such as the mailbox, house numbers and porch light. They may need to be repaired, repainted or replaced to make the home look its best.
Not Clearing the Air
Be mindful of the smells your remodeling has created. While potential buyers love the look of fresh paint and new carpeting, no one wants a home that smells of chemicals. Air out the home thoroughly after you complete the work, and as often as possible while it’s on the market.
Do You Need a Hard Money Loan in Atlanta to Fund Your Next Investment?
If you’re a real estate investor who’s looking for a hard money loan in Atlanta, we may be […]

Your Credit and a Hard Money Loan

Sure, credit matters.

But there are many good people who have terrible credit scores (and vice-versa).

What that means is that those good people are often ignored by lenders, and in many cases, the reasons behind their poor credit are far beyond their control.

So what happens if someone with bad credit wants to get a rehab loan?
Bad Credit and Rehab Loans in Atlanta
When someone with bad credit attempts to get a rehab loan through a traditional lender, the lender may not even look at his or her circumstances. In those cases, turning to an Atlanta hard money lender is typically the best option.


Because a hard money lender, even if they check your credit, is really looking at the most important factor: the value of the house.

In many cases, a hard money lender is able to fund a loan when the applicant has poor or less-than-perfect credit because what really matters is how much the property is worth. Remember, in a hard money loan, the property serves as collateral.
Should You Apply for a Hard Money Loan With Bad Credit?
Don’t let your credit score stop you from applying for a hard money loan. In fact, we may be able to help you if traditional lenders have turned you down. While bad credit can be a challenge, you can overcome it.
Do You Meet Our Loan Criteria?
If you’re thinking about applying for a hard money loan through Paces Funding, 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 […]

What’s a Short Sale?

If you’re like many people—particularly new real estate investors—you’ve heard the term “short sale” fairly frequently.

But what is it, and could it be something you should look into when you’re investing in property in Atlanta or the surrounding communities?
What is a Short Sale?
While “short sale” sounds like it refers to the amount of time you have to close on a deal, a short sale is something very different; it refers to a person selling a property for less than what they owe on it. In a nutshell, they’re shorting the lender some of the money they owe.
Why Do Banks Do Short Sales?
Many lenders would rather get something for a property than nothing at all, and if it makes financial sense, they’ll agree to a short sale. Typically, this is how it happens:

The homeowner (who actually doesn’t own the home; he or she is still paying the bank for it) realizes that the house is headed for foreclosure
The homeowner asks his or her lender to agree to a short sale, and the lender does
The homeowner puts the house on the market and does all the work of selling the home, saving the bank from the hassle of foreclosure (and, in many cases, saving his or her own credit in the meantime)

The average foreclosure costs a lender about 25 percent of the home’s loan amount, so if we’re talking about a $200,000 loan, it’s going to cost the lender around $50,000 to go through the foreclosure process. If they sell the home for $151,000, they’ve saved money. (That’s a little bit oversimplified, but it’s the idea behind a short sale.)
Should Real Estate Investors Buy Short Sales?
As with any other property, it pays to do your due […]

  • DIY Upgrades You Can Do Cheap - ATL Hard Money
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    5 DIY Upgrades That Could Help You Sell Your Investment Property

5 DIY Upgrades That Could Help You Sell Your Investment Property

You should always work with a team of professionals for major upgrades to any investment property, like plumbing and electrical work… but there are dozens of things you can do yourself to add style to the house you’re selling and appeal to a wide range of buyers.
4 DIY Upgrades to Help You Sell Your Investment Property
Easy Upgrade #1: Carved Corbels Beneath Bars
If the home you’re selling has a breakfast bar, make it a little fancier by adding carved corbels beneath it. It’s something so subtle that people won’t notice them directly—but they will notice the added panache the whole bar has.
Easy Upgrade #2: Chandeliers in Unexpected Places
Hang a chandelier—a simple one—in the laundry room. Put one in the master bedroom. People love seeing surprise sophistication in unexpected places.
Easy Upgrade #3: Wall Hooks in Convenient Places
It’s simple but surprisingly attractive: add wall hooks above the kitchen counter that add convenience and style that buyers will love. They can use them for towels, mugs, or anything else—and you can find them and install them yourself.
Easy Upgrade #4: Fit the Sink With a Built-In (Kind-Of) Cutting Board
Give buyers extra food prep space by fitting an under-mount sink with a cutting board. Trim a piece of butcher block to the right size, and then create a lip around the bottom of it so it rests on the edges of the counter around the sink.
Easy Upgrade #5: Put Up Natural Fiber Window Coverings
Rather than everyday blinds or worse, no window coverings at all, hang natural fiber window shades. Added bonus: they help insulate windows.
Do You Need a Hard Money Loan in Atlanta?
If you need funds for an investment property, we may be able to help you. Call us at […]

5 MORE Hot Home Design Trends for 2017

You thought we covered it all in our last post, 5 Hot Home Design Trends to Help You Sell Your Investment Property… but we’re back with five more great tips your buyers will love.
2017’s Hottest Home Design Trends (Part Two)
2017 Home Design Trend 1: Vanities
Vanities are back in, but there’s a twist: only different vanities (read: not the kind your grandmother had) will do. Vintage pieces make great vanities and lend a spa-style ambience to bathrooms with claw-footed tubs.
2017 Home Design Trend 2: Steel and Glass in the Shower
Steel and glass are the “it” thing for those spa-style bathrooms. A walk-in shower with floor-to-ceiling steel-and-glass walls are the right way to go to appeal to modern, trendy buyers.
2017 Home Design Trend 3: Accent Walls With Decorative Painting
Rather than choosing a color that’s a few shades darker for an accent wall, like most people do, try a marbleized wall. Maybe a wall that looks like brushed aluminum… or maybe even something more bold.
2017 Home Design Trend 4: A Real Docking Station
The need for home offices is dwindling, although they’re still in wide use. The thing now, though, is a recessed space in a wall with shelves, drawers, and USB ports built right into the wall so anyone can grab a spot and start working
2017 Home Design Trend 5: Finished Garages
You don’t have to completely finish a garage, but it does help if the walls aren’t showing studs or unpainted drywall. Add brick near the foundation and some molding above it to appeal to buyers who like a more upscale look.
Do You Need a Hard Money Loan in Atlanta?
If you need funds for an investment property, we may be able to help you. Call us at […]

A Word on Low-Maintenance Homes

As a hard money lender in Atlanta, we’ve discussed home improvement plans with hundreds of people – and one common theme seems to be emerging: people really want low-maintenance homes.

That’s something worth remembering if you’re flipping houses in Atlanta.
Why Do Today’s Buyers Want Low-Maintenance Homes?
“Most young homebuyers grew up watching their parents spend weekends with their honey-do lists, or they had chores to do on the weekends,” says Lou Cardillo, a NY real estate professional. “Most young buyers are not going to follow in their parents’ footsteps. They don’t want to do that stuff… They want their weekends to themselves and don’t really want to be cleaning gutters or cutting the grass.”

It makes sense – and couple that with the fact that many younger buyers prefer a turn-key home that’s ready right out of the gate, and you have a perfect understanding of why buyers prefer low-maintenance homes.

But this actually goes a little farther.

Low-maintenance means LED lightbulbs, smart devices, and other technology that makes life easier. No, you don’t have to go all-out (and you probably shouldn’t) on creating a smart home; it might not pay off when you sell. However, you should make the right investments in the right places – such as energy-efficient appliances (including those LED bulbs where possible) and low-maintenance fixtures.
Do You Need a Hard Money Loan in Atlanta?
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 out our loan criteria and read our frequently asked questions so you can learn a little more about the hard money lending process.