Hard Money

Critical Areas to Inspect When Buying a House

If you’re like most people, your emotions sometimes cloud your judgement. While there’s nothing wrong with that in most cases, you can’t let your emotions get in the way when you’re a real estate investor.

There are some critical areas of a property that you’ll need to inspect—sometimes twice—to make sure you’re not falling into a money pit. Even if your inspection gets the green light, you may want to call a specialist for a second opinion. Here are some areas that could use a more thorough inspection:
Foundation
A home inspector will search for visible signs of foundation problems. They’ll check for cracks, deformations, and uniform settlement. If you suspect any problems, or if the inspection shows some areas of concern—you may want to get a second opinion. Spending some additional money on a licensed structural engineer, prior to buying the home, could save you time and money.
Heating, Ventilation, and Air Conditioning (HVAC)
The HVAC system in a home usually undergoes an unremarkable inspection during the home buying process. The equipment is investigated for the potential to heat or cool a home, but there’s usually a lot more to it. For an in-depth inspection that will tell you how the equipment is functioning, you may want to call an HVAC expert to do a check-up.
Plumbing
There is nothing taken for granted more than a home’s plumbing system. If the water comes from the faucets, and the toilets flush; it’s easy to assume that everything is in working order. It may be a good idea to have the home’s main septic line inspected by a professional plumber before you purchase a home. A plumbing pro can perform a more thorough inspection than a home inspector.

Do You Need a Hard […]

What is Working Capital?

Working capital, at least as it pertains to the real estate investing business, is money that you can use to fund improvements on an investment property.
Why People Choose Hard Money Loans for Working Capital
Because a hard money lender can provide working capital quickly, many people choose this route when investing in a property in Florida, Tennessee, and Georgia.
How Do You Calculate Working Capital?
Working capital is your current assets minus your current liabilities. For example, if you have $200,000 in assets but $195,000 in current liabilities, you have $5,000 in working capital.
How A Hard Money Loan Can Help You
When you borrow from a hard money lender, you get up to 65 percent of the home’s after-repaired value, or ARV. That means if you’re flipping a home that, when repaired, will be worth $100,000, you can borrow up to $65,000 to work on it.

Do You Need a Hard Money Loan in Atlanta, Nashville, or Florida?

If you’re an investor who needs a hard money loan, 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.

 

 

  • Signs You Shouldn't Buy an Investment Property - Paces Funding, Atlanta Hard Money
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    Know When to Hold ‘Em… Signs You Shouldn’t Buy an Investment Property

Know When to Hold ‘Em… Signs You Shouldn’t Buy an Investment Property

As a real estate investor, you know how important it is to make each property an exceptional purchase. However, there are some properties that you should just pass on, no matter how eager you are to make a flip. Here are some red flags for property showings that should signal for you to move on to the next deal.

Wood rot. Examine the property thoroughly for signs of rotten wood. Wooden decks and floors surrounding tubs, toilets and sinks should be inspected. If you find signs of rot on the outside, there’s a good chance that behind the wall is even worse. Your home inspector will be able to point out specifics if you didn’t catch them when you first looked at the property (and this is yet another reason it’s so important to have a talented inspector on your team).
Inadequate repairs. A house with a long history is more likely to have amateur repairs. Sometimes the repairs are not up to code, especially when it comes to plumbing or electrical jobs, which means they should be fixed by a professional to prevent additional damage.
Old building materials. Aside from potentially being structurally unsafe, older building materials may contain lead, radon, or even dangerous levels of asbestos. Be sure to have the home tested for dangerous materials before you make a final decision to buy.
Roofing woes. Sometimes a house can look terrific everywhere but up top. Be sure to inspect the roof of any prospective property for holes, leaks, and weathered shingles that need to be replaced. Take a look at the gutters and chimney while you are poking around up there, too. Your inspector will conduct a thorough check, but it’s a good idea to […]

  • DIY Improvements - Get a Hard Money Loan in Atlanta GA
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    3 DIY Improvements You Can Make to Help Sell Your Flip Faster

3 DIY Improvements You Can Make to Help Sell Your Flip Faster

Although the real estate boom of the 2000s is long gone, there are still high-quality investments you can make, including fixing and flipping houses. However, you must be smart about your flip and pick the right home improvements that ensure you receive full asking price. Here are three DIY improvements to help your flip your house.
Faucets
Replacing old and dated faucets goes a long way in increasing the value of your flip. Installing a faucet is quick and easy, and if your flip has a modern appeal, try to install faucets with a refined yet sleek look.
Flooring
Installing new flooring or cleaning and polishing your existing floors will increase the value of your flip and enhance the appeal of your home’s interior. However, check the comps in your neighborhood, and if they all have hardwood floors, do not install laminate floors in your flip.
Light Fixtures
If your flip has antiquated light fixtures, replace them with some more modern looking fixtures. Consider installing an LED track lighting system; prices on LEDs has dropped significantly over the past several years, and they operate using regular household voltage.
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 […]

How After-Repaired Value Can Affect Your Hard Money Loan

Hard money loans are a convenient method for investors to work with lenders to purchase property, especially property that will be flipped or developed for sale as a short-term profit enterprise. Hard money lenders are looking to work with investors in a partnership that allows investors the funds to repair existing buildings or commercial constructions for their resale potential.

There are lenders who will consider providing loans based on the after-repaired value, or ARV.

To take the ARV into consideration requires an appraisal of value before specific repairs or changes planned for the property take place. Usually, an ARV appraisal will consider roofing replacements, foundation repairs, and essential internal appliance upgrades such as central air conditioning, plumbing, and a whole lot more. If specific designs for repair and upgrade of structures are available, the appraiser can include those plans in the appraisal as well.
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.

Smart Ideas for Fixtures in Your Flipped House

When you’re flipping a house, you need to pick great fixtures that buyers will love. Not all fixtures will appeal to everyone, but if you study your market before you dive in with both feet, you’ll know exactly what to do to make the most of your investment.

So where do you start?
1. Adjustable Kitchen
People of varying heights and mobility can now adjust the kitchen to their preferences. Modern technology makes it possible to change the height of kitchen counters and adapt the room to the customer’s liking. This is helpful for people in wheelchairs, children and others who are sharing a home with marked height differences.
2. Smart Fridge
Samsung offers an incredible Family Hub smart fridge that does everything but cook. It even senses when food has gone off, and alerts you when you need to replace items. It also has an entertainment center and the ability to schedule the family’s calendar. You can even view the interior on your smartphone.
3. Motion Sensing Faucets
These hands-free faucets are a great way to stay clean and dry while working in the kitchen. This is a great way for people to hold and fill larger containers as well as eliminating the germs picked up by touching the handles. The motion sensor means there is less to clean up and promotes health by preventing the spread of germs.
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 […]

What Does Loan-to-Value Ratio Mean on a Hard Money Loan?

 

If you’re like most people who are buying a home as an investment property, you don’t want to be tied up in a conventional mortgage loan. Typically, hard money loans are the ideal solution for borrowers who want to fix-and-flip properties.
What is Loan-to-Value Ratio?
The amount of money your hard money lender is able to let you borrow is determined by a mathematical formula. It involves the loan amount divided by the value of the property, which is called the loan-to-value ratio.

Some hard money lenders are willing to lend between 65 and 75 percent of a property’s current value, while others lend based on the home’s after-repaired value.
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.

Who Appraises the Property When You Get a Hard Money Loan?

 

Hard money loans offer great short term financing options for those needing a short term loan. This type of loan is very favorable for the investor looking to purchase a home and after fixing the home up, turn around and sell for greater profit. Hard money loans can help the investor buy time from closing on the home, making updated changes, to the resale of the newly remodeled home. Hard money loan lenders will lend 100% of the acquisition of the real estate parcel and repair costs. The terms of these loans are tailored to be the needs of the borrower.

Hard money lenders typically have a list of approved appraisers or an appraisal company. These appraisers are qualified in looking at the property as a whole and evaluating the would be appraisal if all the remodel work is completed. It’s essential to get a proper appraisal to get the most out of your loan. Good hard money lenders work hard to get the most accurate picture for your appraisal to benefit you the buyer.
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.

Why You Should NEVER Over-Price Your Flip

 

Many rookie real estate investors make the mistake of overpricing their properties when all the work is done.

The bottom line: If you want a successful listing that produces multiple offers, you must price your property correctly. Additionally, an overpriced investment property will sit on the market too long and tie up your money.

The tried and true method for pricing your flips correctly is to find reliable comps in your property’s neighborhood–and the best way to do that is to work with a Realtor(R).

You can also check the market yourself periodically, while you’re fixing up the property. If you do, keep your search for reliable comps to properties that sold in the last 6 months (or less). Also, try and list your flips at the average market value for the particular neighborhood you’re selling in. If you overprice your flips, you will generate little attention from buyers, and the longer your property sits on the market, the less likely you are of receiving an offer at or above your list price.
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.

Why Hard Money Loans Are the Smart Choice for Busy REIs

The term hard money lender isn’t exactly what it sounds like. In reality, working with a hard money lender is a smart way to obtain short-term financing for your real estate investments. In their simplest form, hard money loans are a form of financing with shorter repayment terms than a conventional loan has.
Why Do Professional Real Estate Investors Use Hard Money Financing?
Many professional real estate investors use hard money financing because it fills a legitimate need. First off, hard money offers you a chance to secure funds quickly instead of the going through the grind of qualifying for traditional financing. Secondly, if you are a fix and flip investor, these loans allow you to buy a flip fast, fix it and get it on the market immediately.

If you are struggling with credit issues, know that most hard money lenders do not only consider your credit score. Instead, hard money lenders look at the potential value of the deal and how it will be beneficial to all parties involved. Many busy real estate investors prefer hard money loans because the funding is quick, and they often receive cash-in-hand in as little as two weeks.
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 […]